Collateral Desktop Analysis (CDA) fee

Member since 2017 · 4 posts · 2 votes

Hello,
I am working with a hard money lender to do cash-out refinance on one of my property. The appraiser company, the lender choose charge me $700+ for the appraisal and then i received another email from another company to pay $90 for Collateral Desktop Analysis (CDA). This is my first time using hard money loan and i am confuse as to why i am paying all this money for a appraisal.
is this normal? please any input will greatly appreciated.

Carline
Investor

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Myesha Michelle DavisPro Member

Real Estate Broker · Jacksonville FL · Member since 2018 · 3 posts · 1 vote

I know this post is old but perhaps it me posting a reply will help the next person looking for answers.

Yes this is common for commercial loans or Non-QM such as DSCR or hard money loans to have a CDA. As a Mortgage Loan Officer I have some lenders and that charge $250 for the COLLATERAL DESKTOP ANALYSIS (CDA).

It is based on the type of loan product.

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Myesha Michelle DavisPro Member
Real Estate Broker · Jacksonville FL · Member since 2018 · 3 posts · 1 vote
3y
I know this post is old but perhaps it me posting a reply will help the next person looking for answers.

Yes this is common for commercial loans or Non-QM such as DSCR or hard money loans to have a CDA. As a Mortgage Loan Officer I have some lenders and that charge $250 for the COLLATERAL DESKTOP ANALYSIS (CDA).
It is based on the type of loan product.
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Robin SimonBusiness Member
Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
3y
Quote from @Myesha Michelle Davis:

I know this post is old but perhaps it me posting a reply will help the next person looking for answers.

Yes this is common for commercial loans or Non-QM such as DSCR or hard money loans to have a CDA. As a Mortgage Loan Officer I have some lenders and that charge $250 for the COLLATERAL DESKTOP ANALYSIS (CDA).
It is based on the type of loan product.

Yes - pretty much 100% required for all Non-QM loans including DSCR
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Matthew DaviesBusiness Member
Lender · Tampa, FL · Member since 2023 · 22 posts · 6 votes
3y
I can confirm Robin's statement. Lenders should however, be transparent in what fees to expect and when. Not all lenders will charge for a CDA - we do not.

For more context, the purpose of a CDA is to validate the appraisers value to ensure accuracy. Typically, the value would need to fall within a 10% margin of the appraisal.
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Zach Edelman
Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
3y
This is completely normal and a justifiable expense.
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