New Lender/New assignment/effective date

Discussion in 'Urgent - Help Needed' started by Tavia Placella, Mar 17, 2006.

Thread Status:
Not open for further replies.
  1. Tavia Placella

    Tavia Placella New Member

    0
    Oct 17, 2005
    Professional Status:
    Licensed Appraiser
    State:
    Maine
    I did an inspection for a property 2/21/06 for a lender and last minute the borrower changed lenders. The borrower had a copy of my appraisal I completed on behalf of the first lender and gave to to the second lender and closed (purchase & sale) on 3/10/06. I was requested to transfer the appraisal to the new lender, which I said would have to be a new assignment/report. I got the request from second lender on 3/16/06. My question is this: Since I originally inspected the property on 2/21/06, can I use that date as the effective date and sign it as of 3/17/06? Or re-inspect the property with a new effective date and disclose that it is for a purchase transaction (however, it already closed on 3/10/06)?? Any thoughts?
    Any help on this would be greatly appreciated!
     
  2. George Hatch

    George Hatch Elite Member

    17
    Jan 15, 2002
    Professional Status:
    Certified General Appraiser
    State:
    California
    If that works for the intended users of this workproduct it should be no problem.

    I wouldn't make any assumptions about what works for them, though. Make sure you clear it with them first before you submit the report. It would really hurt to have to make a free trip to reinspect after you'd already completed your report and moved on.
     
  3. Tavia Placella

    Tavia Placella New Member

    0
    Oct 17, 2005
    Professional Status:
    Licensed Appraiser
    State:
    Maine
    Thank you for your speedy response.
     
  4. Brad Ellis

    Brad Ellis Senior Member

    0
    Feb 7, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Tavia,

    Ditto to what George said. Now you have 2 USPAP instructors' free advice!

    Brad
     
  5. Denis DeSaix

    Denis DeSaix Elite Member

    35
    May 16, 2005
    Professional Status:
    Certified General Appraiser
    State:
    California
    Tavia-

    You have a somewhat interesting situation. For simplicity, let’s call your original client Lender A and the client who closed the purchase and now requests your signed appraisal in their name as Lender B.

    Lender A ordered the appraisal that you completed on 2/21/06. Since Fannie’s certifications require the inspection date and effective date to be the same, the effective date of the appraisal is 2/17/06.

    The borrower decides not to close with Lender A, but chooses Lender B. The borrower gives Lender B a copy of your appraisal, and they use it to close the deal. Lender B has accepted an appraisal originally completed for Lender A; if they are federally regulated banks, they can do this. Now, Lender B wants you to provide them with their own copy of the appraisal report that, I assume, they want in their name. The house has closed (3/10/06), and the purchase appraisal would be “after the fact”. What can you do?

    • First, you don’t have to do anything. You could simply decline and they’ll have to live with the fact that they made a loan using someone else’s appraisal. I don’t know why you would want to do this, but it is an option.
    • You are correct that it is a new assignment.
    • You could do the report with a current date: however, that becomes tricky. Is it still a purchase appraisal? Maybe this falls under the “other” category? It wouldn’t be a refi appraisal (unless their going to re-issue another loan). I think it becomes an “other” appraisal; it is still for a mortgage finance transaction, but it is not a purchase or refi. Also, most lenders will want their purchase appraisal to be dated before the actual close of the escrow/funding. However, since they’ve already made the loan, this may not be an issue.
    • Can you now do the purchase assignment AFTER THE FACT for a new client that wasn’t the intended client of your original appraisal report? Good question. Is the intended use the same? I’m not sure; they’ve already made the loan, so it still falls under the “other” category as far as I’m concerned. New intended use, new assignment, no retrospective dates using the new form, new effective date.
    Maybe George or Brad can come back and tell us which way to go (or maybe they’ll just say I have too much time on my hands!)?
     
  6. Tony V

    Tony V Elite Member

    4
    Mar 29, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    Please be sure to at least do a walk-thru of the subject for the new assignment........I had done an observation on January 12, 2006 of a large dwelling in an expensive area.secondary homes.......values over 3 mill plus....recieved an order for the same property......last week....made the call to the borrower...set up the walk-thru for last Saturday...got there at 10am and found that pipes had burst on the second level and had created some damage...ceilings had fallen, carpets soaked sheetrock etc....
     
Thread Status:
Not open for further replies.

Share This Page