I had an FHA appraisal done on a foreclosed home I'm buying... it cost me
$475.

There were some issues which the seller(the bank) fixed. When the appraiser
Came out again to look at the fixes. He wouldn't release the report to my
Underwriter until I paid a $150 reappraisal fee.

Is that legit?

He did additional work... why shouldn't he charge for it?

I'm fine with that if that's the case.
I was told this was very uncommon. I was told that the
Original $475 was the highest fee they ever seen an appraiser
Charge.

This company in New York hired this guy from San Diego to come
Up to Palm Springs to do this... there aren't any FHA appraisers in the
PS area?

Really not that high a fee, slightly high for a local person, but not out of line at all

Is it common to charge a reappraisal fee?
My real estate agent and mortgage broker said
They've never heard of this

Not common, but also not unheard of. Mine tried but the mortgage broker talked him out of it.

Considering he had to travel to go to Palm Springs from San Diego I don't think his fee was out of line. That's probably why he charged for a reappraisal fee as well. You should have gotten a local appraiser instead. Had he been local and didn't have to drive how many hours back and forth I'm sure his fee would have been much less.

This wasn't my choice.
The underwriter in NY picked
Out the company that provides
FHA Appraisers.

He did the work; he is entitled to be paid. I don't find this the least bit unusual.

It's the cost of dealing with the FHA.