Sit Down Before Reading This

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Mike Phillips, Sep 28, 2007.

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  1. Mike Phillips

    Mike Phillips Senior Member

    0
    Dec 16, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    EVERYBODY BETTER SIT DOWN BEFORE READING THIS:

    from USPAP Q&A, September 2007. Volume 9, Number 9.

    (parts deleted by MP)

    Approving the Use of Your Digital Signature

    Question:
    I am in a situation where I need to authorize someone to apply my digital signature for me. This would require me to reveal my current Personal Identification Number (PIN) or password to that person. If I approve this use of my digital signature have I given up “sole personal control?”

    Response:
    No. Such action does not constitute a relinquishment of your digital signature or personal control, and is not a violation of USPAP.

    Providing Signature to Create a Signature File

    Question:
    I am a residential appraiser and I use software to generate my appraisal reports. The software company requires me to provide a copy of my signature to create an electronic signature file for use with the software. Under USPAP does this represent giving up “sole personal control” of my signature and violate USPAP?

    Response:
    No. This situation is analogous to providing a copy of your signature to a rubber stamp company for purposes of creating a signature stamp. Common business agreements in these situations limit use of the signature to creating the signature image. In providing a signature to a software company or rubber stamp company, the appraiser is not authorizing use of the signature.

    Losing Control of a Digital Signature

    Question:
    If my digital signature is stolen, am I in violation of USPAP for failing to have “sole personal control” of my signature?

    Response:
    No. Unauthorized use of the appraiser’s signature is not a violation of USPAP. If the appraiser’s digital signature is stolen, the appraiser is the victim of a crime. Any use of the signature is not authorized and beyond the appraiser’s control. This is analogous to a party who uses an appraiser’s rubber signature stamp without permission from the appraiser, or a party who simply puts pen and ink to paper and forges an appraiser’s signature. In these cases the appraiser did not give permission to use his or her signature.

    Client Altering the Report

    Question:
    When I transmit my residential form report electronically I have heard that some of my clients are opening the appraisal file and removing my signature file, reformatting the data, and in other ways altering my appraisal report for the client’s use. What are my responsibilities under USPAP if I know or believe such actions are occurring after my report is delivered to the client?

    Response:
    USPAP does not specifically address who “owns” an appraisal report, the research necessary to produce that report or the report’s supporting documentation. Once an appraisal report is delivered to a client, a client may do a variety of things, including redacting or removing the appraiser’s signature, or converting data from the report into a format more functional to the client, etc. (my bold) Once the appraisal report has been transmitted to the client, USPAP does not place further responsibility on the appraiser for the client’s use of that report.

    *****
    There it is – another fine example of leadership from our ASB.
    MP
     
  2. Christopher Tea

    Christopher Tea New Member

    0
    Aug 13, 2003
    Professional Status:
    Certified General Appraiser
    State:
    Georgia
    Son of a Gun!!

    Now does that "may" mean they are allowed to do this, or does it mean they might do this?

    CT
     
  3. Tom Woolford

    Tom Woolford Elite Member

    5
    Nov 20, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Thats why I include a line in my addenda that I will only guarantee an appraisal that is IDENTICAL to my file copy, and that any appraisal that is not identical can be assumed to be altered, and not reliable.
     
  4. Tony V

    Tony V Elite Member

    4
    Mar 29, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    The answers are CHILLING...
     
  5. Mr Rex

    Mr Rex Elite Member

    14
    Jan 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    The only mild suprise is the first one. The others are to be expected. The last one may seem troubling, but if you ask anybody that was around pre-electronic submission, they will tell you that the lenders often tore the reports apart and threw away everything but the page with the final value on it.
     
  6. Bill_FL

    Bill_FL Senior Member

    0
    Aug 23, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    WOW. I am pretty amazed at that response.

    ________________________________________________________________

    EDIT: I was so amazed, I went to read it for myself. Where did you get this? As of this posting, it is not on TAF site under USPAP Q & A. Only up to August is there.
     
    Last edited: Sep 28, 2007
  7. Mister Ed

    Mister Ed Senior Member

    0
    Jan 24, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Georgia
    Remember all you Florida appraisers... The FREAB passed a rule stating that appraisers may NOT give out the PIN for their signature even to their secretaries. I learned that in my 2006 Florida law update class 3 months before I moved to Georgia.

    I never gave my password out, anyway (still don't--and don't know my business partner's PW).


    So... which one trumps? USPAP or FREAB rules?
     
  8. Mister Ed

    Mister Ed Senior Member

    0
    Jan 24, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Georgia

    I guess we see where the ASB stands on Pam's law suit. :Eyecrazy: :shrug: :unsure: :angry:
     
  9. Mountain Man

    Mountain Man Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Georgia
    What might be okay under USPAP, could get you into hot water in GA... State License Law.

    Authority O.C.G.A. §§ 43-39A-8, 43-39A-13, & 43-39A-18.
    539-3-.02 Standards for Developing and Reporting An Appraisal. Amended:

    (o) fail to maintain at all times direct control of the appraiser’s signature and the method by which that signature is affixed to an appraisal report. An appraiser may grant permission to another to affix the appraiser’s signature to an appraisal report provided that the permission is in writing, the permission extends to only one specific appraisal report, the writing identifies the report and the amount of the opinion of value, and the appraiser maintains a copy of the written permission in the appraiser’s work file. An appraiser shall not grant blanket authority to another person to affix the appraiser’s signature to an appraisal report or reports; and
    (p) use any uniform residential appraisal report form for reporting appraisal work for any purpose other than to report an appraisal.
     
  10. Mountain Man

    Mountain Man Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Georgia
    In these cases Ed, state law is more restrictive and is the rule to follow. While USPAP as the minimum standard might not have a problem with it, our state does. It would be best to listen to the state if one has plans to remain licensed in THIS state. :)
     
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