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  #1  
Old 02-08-2009, 06:10 PM
mcgarland mcgarland is offline
 
Join Date: Aug 2007
State: Maryland
Professional Status: Licensed Appraiser
Posts: 17
Default Can I appraise the home my brother is purchasing?

My brother is in the process of purchasing his first house, which is a new home. The lender hired me to appraise the property. It is an FHA loan.
The lender is aware that I am related to the borrower. Is it ok for me to complete the appraisal? The only thing I could find in researching this is the following line under the Appraisers Certification in the 1004:

"I have no present or prospective interest in the property that is the subject of this report and I have no present or prospective personal interest or bias with respect to the participants in the transaction."

I just want to make sure I am compliant with USPAP as well as FHA guidelines.

Any help appreciated with this!
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  #2  
Old 02-08-2009, 06:27 PM
leelansford leelansford is offline
 
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State: Illinois
Professional Status: Certified Residential Appraiser
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Let me ask this: If later, someone were to question your appraisal and the issue of "bias" were to arise, do you see how someone could wonder about your abilility to be completely impartial?
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  #3  
Old 02-08-2009, 06:30 PM
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Delta85 Delta85 is offline
 
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State: Connecticut
Professional Status: Certified Residential Appraiser
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At a minimum you'd have to disclose in the report what your relationship is to the borrower. Then when the UW sees that they may red flag it and decline to allow it anyways.
  #4  
Old 02-08-2009, 06:37 PM
Thomas Fiehler Thomas Fiehler is offline
 
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Location: Cincinnati,OH
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MC-When in doubt, the answer is usually NO.
  #5  
Old 02-08-2009, 06:40 PM
mcgarland mcgarland is offline
 
Join Date: Aug 2007
State: Maryland
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That is a great point Lee, and I do understand the issue of "bias". It is a straight forward "cookie cutter" appraisal. A townhouse in a new neighborhood with lots of similar recent comps. I'm thinking I should keep the order but assign it to one of my FHA appraisers.
  #6  
Old 02-08-2009, 06:42 PM
Tom Woolford Tom Woolford is offline
 
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Location: Nature Coast
State: Florida
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CAN you do it; yes. SHOULD you do it: no.
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  #7  
Old 02-08-2009, 06:48 PM
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Mike Kennedy Mike Kennedy is offline
 
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Location: Southern Hudson Valley
State: New York
Professional Status: Certified Residential Appraiser
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"I'm thinking I should keep the order but assign it to one of my FHA appraisers."

define "my" ?????


I suggest the following excerpt applies to one of "your" staff or IC appraisers accepting / completing the assignment at YOUR request no differently than if you did the assignment yourself.

I have no (or the specified) present or prospective interest in the property that is the subject of this report and no (or the specified) personal interest with respect to the parties involved.

I have no bias with respect to the property that is the subject of this report or to the
parties involved with this assignment.

------

IMO, the "well, the borrower wasn't my brother just the brother of my Boss / the Appraiser who assigned me the order and required that it be published under His Firm's Name - defense doesn't, and won't, pass muster as credibly Independent, Objective, and Unbiased.
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Last edited by Mike Kennedy : 02-09-2009 at 08:02 AM.
  #8  
Old 02-08-2009, 06:55 PM
Roseann Dufala Roseann Dufala is offline
 
Join Date: Jan 2004
Location: Greenville, SC
State: South Carolina
Professional Status: Certified Residential Appraiser
Posts: 150
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In this world of litigation, I would say that the answer is NO, you should not do this appraisal. You might want to check your E and O provider, too.
  #9  
Old 02-08-2009, 07:11 PM
Terrel L. Shields's Avatar
Terrel L. Shields Terrel L. Shields is online now
 
Join Date: May 2002
Location: Springtown, AmeRica
State: Arkansas
Professional Status: Certified General Appraiser
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E & O would frown on it.
Not worth the risk.
UW will flag it.

I got rejected once on an appraisal for having the same last name as a borrower who was neither kin nor had I ever met him. He was a reject from H & R Block because they thought I was lying apparently. I had a statement in the report that avered I was no kin nor even acquainted with them.
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  #10  
Old 02-08-2009, 07:15 PM
Walter Kirk Walter Kirk is offline
 
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Location: Audubon, N.J.
State: New Jersey
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You certainly have a bias. The buyer is your BROTHER, you either love him or you hate him.
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