1. Welcome to AppraisersForum.com, the premiere online community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Uspap Privacy

Discussion in 'General Appraisal Discussion' started by Mr Rex, Sep 20, 2004.

Thread Status:
Not open for further replies.
  1. Mr Rex

    Mr Rex Elite Member

    140
    Jan 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    I feel creepily like Joan Rivers with the required phrasing of that question and I know it has been covered before. Please provide chapter and verse of USPAP so I don't look like an idiot. It's too easy as it is .
     
  2. CANative

    CANative Elite Member

    160
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    From the ethics section in USPAP

     
  3. CANative

    CANative Elite Member

    160
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Definition of "Client"

    The borrower/homeowner is not your client. (Unless they engaged you directly, but then the appraisal could not be used for mortgage lending in a FRT)
     
  4. CANative

    CANative Elite Member

    160
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Although I suppose it could be argued that if the borrower has a copy of the appraisal, the original client has no further expectations of confidentiality in regards to the results of the assignment. :shrug:
     
  5. Ben Vukicevich SRA

    Ben Vukicevich SRA Senior Member

    0
    Feb 9, 2002
    Professional Status:
    Certified General Appraiser
    State:
    New Jersey
    If you have verified that the borrower actually has a copy, then you can talk. But first I'd have them fax me a copy of the report so I know that nothing was redacted by the client. If it was a URAR, there's not much to worry about there, other than the assignment results AKA the value. So if they know the value, there's not much left as confidential

    To me, there is no client confidentiality to worry about once the report has been released to the borrower.

    Whether you want to talk to the borrower is your business decision as they are not an Intended User.

    Ben
     
  6. Mr Rex

    Mr Rex Elite Member

    140
    Jan 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    My point is in agreement with Greg's last post. Does the intended user/client in effect give the borrower rights to "confidential" info when they give them a copy. And since the lender is required by law to give them a copy, isn't it impled that they are a user? I know this is the start of a firestorm but I think an Advisory Opinion that directly addresses is called for. If I missed it, I am glad to accept the harangues of being a Dumb-A. Otherwise, I would apppreciate a comment. If I did miss it, gimme the info anyway, obviosuly I need help.
     
  7. CANative

    CANative Elite Member

    160
    Jun 18, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Having a copy of a report does not make someone an intended user.
     
  8. Mr Rex

    Mr Rex Elite Member

    140
    Jan 12, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    I agree Greg, I still would like better advice from USPAP. It seems like a lot of what shoud be simple issues would be answered in more simple terms by USPAP. I guess a better way of asking the question is, what level of confidentiality is acceptable and or required. I have followed requirements in my dealings with my original client. They have now released the report to the borrower as required by law. They have now made the borrower aware of whatever confidential info was contained in my report. What now?
     
  9. Ben Vukicevich SRA

    Ben Vukicevich SRA Senior Member

    0
    Feb 9, 2002
    Professional Status:
    Certified General Appraiser
    State:
    New Jersey
    1) You tell them that they are not an intended user and to go away.

    2) You value your client's business, so you talk to them.

    As I said, it's a business decision you have to make.

    Ben
     
  10. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    303
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    Is there something that you would disclose during the course of discussing the report with a borrower that you have not disclosed to the client? Then what can you tell the borrower? If you discourse with them, then I argue they could go to court and argue that since you responded to them, they are intended users of the report. And that opens up a new can of worms. You are now responsible for two parties, the client and the borrower.

    In the lawsuit against me, the plaintiffs continued to try and tie me to the bank and its actions, arguing that I provided information to the bank prior to closing dispite the report being dated 4 days after the sale of the property. The court ruled that a conspiracy to commit fraud requires an underlying act of fraud and the conspiracy has to be a separate tort, thus, had I went back to the borrowers after the report was finished and told them that they got a good deal, it would be conspiracy and the report, if fraudulent, would be the underlying fraud. Since the borrowers were unable to present any evidence that they had ever had any contact with me whatsoever, the conspiracy charges were never going to make muster. I still had my long distance phone records that proved I called no number that either party had to set up an appointment, as i had conversed only with the seller and not these buyers.
    PS-Your client must identify all intended users "on the basis of communication with the client at the time of the assignment." AT the time of assignment, not AFTER. Definitions in front of USPAP
    I would argue, USPAP or not, keeping professional distance from the borrower is just plain common sense. Once you tie yourself to the borrower, you are open to any claim they are wicked enough to think up. That's why I don't accept checks at the door, and why I don't converse with the borrower after the report is done. And, under what circumstance would you change a report upon the borrower's word? Let the borrower express their concern to the LO, and they can contact you with the borrowers concerns. If you make a mistake, correct it.
     
Thread Status:
Not open for further replies.

Share This Page