Can a lender collect from the borrower an appraisal fee of $200, listing the fee as such on the HUD-1, yet pay an independent appraiser $175 and collect the $25 difference?
No, the lender may only collect $175 as the actual charge. It is a violation of Section 8 (b) for any person to accept a split of a fee where services are not performed.
Substitute "Search/searcher" for "Appraisal/appraiser" above. This is item 25 of FAQs on the Hud Website regarding fee splitting.
See the "Tools" section at my website www.fficorporation.com for the full link and others.
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