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What does CERTIFICATION 23 mean exactly?

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Manuel Rondon, Jun 29, 2007.

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  1. Manuel Rondon

    Manuel Rondon New Member

    0
    May 14, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    I just got an email from one of my lenders stating that I should change part of my text addendum due to "certification 23" in the URAR 2005 forms, which states that "The borrower, another lender at the request of the borrower, the mortgagee or its successors and assigns, mortgage insurers, government sponsored enterprises, and other secondary market participants may rely on this appraisal report as part of any mortgage finance transaction that involves any one or more of these parties.”

    My addendum states "THIS APPRAISAL IS FOR LENDING PURPOSES ONLY. NO OTHER USE OF THIS APPRAISAL IS AUTHORIZED. THIS APPRAISAL IS NOT FOR INSURANCE PURPOSES, UNLESS SPECIFICALLY AUTHORIZED."
    Am I contradicting myself by wanting to protect my ASSets? Thanks.
     
  2. VolcanoLvr

    VolcanoLvr Senior Member

    5
    Oct 30, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Washington
    PMI insurance providers have rights to the report info.

    The issue of many posters here on the AF is whether or not Replacement Cost Home insurance (Homeowner's Insurance) providers should have the same access. It's a different product than PMI insurance.

    Problem is the latter group has used appraisal reports for years for this purpose.
     
  3. Elliott

    Elliott Elite Member

    29
    Apr 23, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Oregon
    This is the wooden cross to show the vampire, I mean, lender,


    Intended User Statement (FNMA)
    The Intended User of this appraisal report is the Lender. The Intended Use is to evaluate the property that is the
    subject of this appraisal for a mortgage finance transaction, subject to the stated Scope of Work, purpose of the
    appraisal, reporting requirements of this appraisal report form, and Definition of Market Value. NO ADDITIONAL
    INTENDED USERS ARE IDENTIFIED BY THE APPRAISER.
     
  4. BOB PADRICK

    BOB PADRICK Member

    0
    Nov 11, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    RELS, by any chance?

    Take a moment to go to the USPAP website and find the July 2005 Q&A discussion on the new forms and intended use/user...
     
  5. Wendy

    Wendy Senior Member

    0
    Feb 23, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Manuel,
    Maybe add this comment to your cost approach section instead:

    "Value indicated by cost approach can not be used for insurance valuation. Using this data for insurance purposes may result in loss in the event of causality claim."

    I have it in BOLD on mine. Lifted it from a forum member.....'bless em!
     
  6. chris gallo

    chris gallo Sophomore Member

    0
    Mar 15, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Maryland
    The borrower, another lender at the request of the borrower.

    I do not reassign reports, but does this imply that the borrower can have the appraisal sent to a different lender with the original client information intact.
    Or does it mean that the borrower has the right to have the client name changed to a new client name. I thought that there was an inteneded user (client) and the appraiser does not recognize any other users.

    I had an appraisal done on my home and a USPAP instructor did the appraisal and when the mortgage company folded during the loan process the loan officer had called him and asked if it could be put in another lenders name due to the situation and he said it was illegal to do so.
    Then the same instructor during my wifes training class said appraisals could be changed to other lenders names.

    Now i am not sure weather it is permitted or not and under what conditions would it apply.
     
  7. Justin Dake

    Justin Dake Sophomore Member

    0
    Sep 12, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    ^^ how long ago did your wife take the course....you used to be able to re-assign appraisals if I remember correctly.
     
  8. chris gallo

    chris gallo Sophomore Member

    0
    Mar 15, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Maryland
    we bought our home last august and she finished the trainee course in may of this year.
    I have seen this issue come up in classes befor and the instructors have never been clear on the subject.
    I know some borrowers would switch lenders every week and just keep having us change reports right along with them if they could.
    I am still under the impression that it is a violation to remove a clients name from a report and change it to a new one. You have to keep the reports for 5 years and you would not have it if you were changing the client names all the time. That is just one reason of many why I see it should not be changed.
    I really think it should be black and white.
     
  9. BOB PADRICK

    BOB PADRICK Member

    0
    Nov 11, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    Although not binding, they are several AO's are surprisingly clear on the issue:

    AO 25, 26, and 27

    25-id'ing the client in a frt

    26-reassignments prohibited

    27-allows for reappraising the same property.
     
  10. lofapco

    lofapco Sophomore Member

    0
    Jun 6, 2007
    Professional Status:
    Certified General Appraiser
    State:
    Minnesota
    In reality, there is nothing from preventing a bank or Mortgage company from accepting the appraisal from another bank or mortgage company with no changes necessary. I always figured it was a "mark my territory" type request to change the name so the bank/mtg co would have their name on the report. It is not required and I would never just "change" the name without a new request and FEE! That typically worked for them to just assign the report to the other lender without me being involved.
     
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