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Discussion of Value with Homeowner

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by bbr711, Sep 24, 2009.

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  1. bbr711

    bbr711 Sophomore Member

    0
    Jun 30, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Tennessee
    Can someone direct me to USPAP verbiage that limits appraiser discussion of value to only the client, ie - the lender?

    In the past, it has sufficed for me to mention to the homeowner that I am legally bound to discussion of value with the lender alone when the lender orders the appraisal. This homeowner is different, and he has my email address...

    I need to reference legal jargon before this gets more out of hand...


    Thank you.
     
  2. Rich Heyn

    Rich Heyn Senior Member

    4
    Jan 17, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Michigan
    Ethics Rule lines 265-266
     
  3. Randolph Kinney

    Randolph Kinney Elite Member
    Gold Supporting Member

    83
    Apr 7, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    I don't know that your homeowner will understand or recognize USPAP as the authority.

    Page 2 line 66 defines who is the client.

    Page 8 line 295 explains confidentiality and the obligation to the client-appraiser relationship. It is part of the ethics rule.
     
  4. Carnivore

    Carnivore Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    I have a better idea. Call your amc/lender, its there job to deal with this issue.

    We are mushrooms now. We are limited to who and what we can talk about. Thisis contrary to the intent of USPAP, but hey its a document that is becoming marginalized anyway. So who cares.

    or

    You could call the AMC/lender and ask them for written permission to speak with the borrower!!
     
  5. Mike Kennedy

    Mike Kennedy Elite Member

    96
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    ETHICS RULE
    Confidentiality:

    An appraiser must protect the confidential nature of the appraiser-client relationship.
    An appraiser must act in good faith with regard to the legitimate interests of the client in the use of confidential information and in the communication of assignment results.
    An appraiser must be aware of, and comply with, all confidentiality and privacy laws and regulations applicable in an assignment.

    An appraiser must not disclose confidential information or assignment results prepared for a client to anyone other than the client and persons specifically authorized by the client; state enforcement agencies and such third parties as may be authorized by due process of law; and a duly authorized professional peer review committee except when such disclosure to a committee would violate applicable law or regulation. It is unethical for a member of a duly authorized professional peer review committee to disclose confidential information presented to the committee. ​
    U-8 USPAP 2008-2009 Edition​
    ┬ęThe Appraisal Foundation
     
  6. Dutchman

    Dutchman Member

    0
    Jul 11, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Washington
    Is it against USPAP (the rules) to ask an homeowner what they think it's worth???
     
  7. leelansford

    leelansford Elite Member

    45
    Mar 29, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Illinois

    "No problem-o!"

    No need to get all "legal-eese" with the owner. Simply state--and once should suffice (from my perspective)--that "whoever" is your client and all of your communication regarding the appraisal is between you and your client.

    Finally, and in kind fashion, refer the homeowner back to the lender and let the lender deal with the problem.

    Sometimes the more you try to "assist" or "educate", the deeper the hole you find yourself in. And, the "First Rule of Holes" is that once you find yourself in one, stop digging.
     
  8. Mike Kennedy

    Mike Kennedy Elite Member

    96
    Sep 28, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    Prior to completion of a report - nope. Is it advisable to do so-nope. After completion - nope, the homeowner (mtg appraisal) is not the Client.:icon_idea:
     
  9. Mike Garrett RAA

    Mike Garrett RAA Elite Member

    15
    Jan 14, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    I always try to head off any problems with a simple statement. First, I have about four questions I always ask a home owner about the property. Next I say..."OK, well that's all I need for now. I expect to complete the appraisal by XXXXXXXX and will be sending it electronically to the client (VA). You are entitled to a copy of the appraisal but you must request it from the lender, I can not give you a copy or discuss it with you as you are not my client".

    If they ask me what I think the property is worth I reply..."I won't know that until I complete the appraisal. You can find that out from the lender". "Thank you for your assistance, have a nice day!"
    And then i am out the door.

    It works. Never have a problem after that.
     
  10. Riick

    Riick Elite Member

    32
    Aug 14, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Delaware
    ^^^
    Mike... I'm curious, What are the 4 questions you ask??

    .
     
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