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Can I Give A Copy To The Borrower?

Discussion in 'General Appraisal Discussion' started by zhencai, Jul 24, 2005.

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  1. zhencai

    zhencai Sophomore Member

    0
    May 27, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Agent ordered the appraisal and borrower wanted a copy of the report. I collected the payment from the borrower. Should I give a copy to her? I told her to contact agent but she wouldn't.

    Thanks for the advice.
    Zhen Cai
     
  2. Mike Boyd

    Mike Boyd Elite Member

    0
    Jan 18, 2002
    Professional Status:
    Retired Appraiser
    State:
    California
    Real estate agent or loan agent? Either way, I would contact the agent since that agent is the client. Even though the borrower paid for it, the agent remains the client. I'm not sure that I agree with this law (privacy)but that has been the interpretation.
     
  3. Otis Key

    Otis Key Elite Member

    0
    May 15, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
     
  4. Ray Miller

    Ray Miller Elite Member

    0
    Feb 20, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Wisconsin
    The way I understand it you can not. The company or LO that ordered it is client. By the same law/reg. The borrower has the right to request a copy in writing within 30 days and the lender is required to send it to them.
     
  5. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    3
    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    State:
    Florida
    My first question is WHO IS YOUR CLIENT????

    If your appraisal is for a mortgage loan, you NEVER should have accepted the order from a real estate agent in the first place - unless that agent is also the loan officer for the lender/client.

    If the appraisal is to be for mortgage lending, the lender MUST be the one ordering the appraisal!!!!!
     
  6. Richard Carlsen

    Richard Carlsen Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Michigan
    The lender, your client, is the owner of the report. It would not be right to give away something that is not yours. There is nothing in the report that would be considered to fall under the privacy act since it is about the borrowers property and for their loan. Under the Fair Credit Act, the lender is obligated to give a copy of the report to the borrower if asked.

    There is no stipulation as to how that report has to be delivered. Therefore, if the lender, your client, so requests and authorizes it, you may certainly give a copy to the borrower.

    My policy is that if it is specifically requested by my client to provide a copy to the borrower, I will transmit a .pdf copy of the report (reduced to 75% size so they can print on standard paper) to the borrower. I will not print a copy for the borrower. The lender can do that just as well as I can. There is no charge for this service.
     
  7. Oregon Doug

    Oregon Doug Senior Member

    0
    Jan 15, 2002
    Professional Status:
    General Public
    State:
    Oregon
    Zhen - The simple answer is "NO" - for the reasons stated above and a few others.

    Oregon Doug
     
  8. zhencai

    zhencai Sophomore Member

    0
    May 27, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    The agent is loan agent. Thanks for the advice!

    Another question: if the borrower orders the appraisal from me directly, will banks accept it for loan application? Or the appraisal has to go through loan agents?

    Thanks again.
    Zhen Cai
     
  9. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    3
    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    State:
    Florida
    No, the lender is mandated NOT to accept any appraisal unless they themselves ordered it, optional if it was originally ordered by another lender only. Few banks don't know the rules they are supposed to abide by.

    Read through these posts:

    http://appraisersforum.com/forum/index.php?showforum=34

    Pay attention to the FDIC post for more information on this question.
     
  10. Robert Anderson

    Robert Anderson Senior Member

    0
    Nov 27, 2004
    Zhen,

    The lender is required to directly engage the appraiser.

    To stay out of trouble, you should read Advisory Opinion 25, which provides as follows:

    In order to not be misleading when contacted by a prospective client the appraiser’s obligation is one of proper disclosure. Before an appraiser accepts an assignment knowing the intended use of the appraisal is, or may be, for a federally related transaction by a federally insured depository institution, it is that appraiser’s responsibility to disclose to the prospective client that the lender or its agent is required to directly engage the appraiser. The appraiser should also disclose to the prospective client that it is unethical for the appraiser to later “readdress” or otherwise change the report to indicate a federally insured depository institution was the client when the appraisal was performed for another party (see AO-26 titled "Readdressing [Transferring] a Report to Another Party" and AO-27 titled "Appraising the Same Property for Another Client" for related advice on this issue).

    http://209.213.217.34/html/USPAP2005/ao25.htm

    Bob Anderson
     
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