Real Estate Appraisal Forum

appraisersforum.com logo
The Premiere Online Community for Real Estate Appraisers!
 Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
 
 
Go Back   Appraisers Forum > Real Estate Appraisal Forums > General Appraisal Discussion
Register Help Our Rules Calendar Archives Mark Forums Read


Closed Thread
 
Thread Tools
  #1  
Old 09-20-2004, 08:21 PM
Mr Rex's Avatar
Mr Rex Mr Rex is offline
 
Join Date: Jan 2004
Location: X Marks the spot
State: North Carolina
Professional Status: Certified Residential Appraiser
Posts: 26,350
Default

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 .
__________________
You talking to me?
Sponsored Links

  #2  
Old 09-20-2004, 08:25 PM
CANative's Avatar
CANative CANative is online now
 
Join Date: Jun 2003
Location: Ukiah, CA
State: California
Professional Status: Certified Residential Appraiser
Posts: 47,212
Default

From the ethics section in USPAP

Quote:
Confidentiality
An appraiser must protect the confidential nature of the appraiser-client relationship.

An appraiser must act in good faith with regard to the legitimate interests of the client in the use of confidential information and in the communication of assignment results.

An appraiser must be aware of, and comply with, all confidentiality and privacy laws and regulations applicable in an assignment*.

An appraiser must not disclose confidential information or assignment results prepared for a client to anyone other than the client and persons specifically authorized by the client; state enforcement agencies and such third parties as may be authorized by due process of law; and a duly authorized professional peer review committee except when such disclosure to a committee would violate applicable law or regulation. It is unethical for a member of a duly authorized professional peer review committee to disclose confidential information presented to the committee.

Comment: When all confidential elements of confidential information are removed through redaction or the process of aggregation, client authorization is not required for the disclosure of the remaining information, as modified.

*NOTICE: Pursuant to the passage of the Gramm-Leach-Bliley Act in 1999, numerous agencies have adopted new privacy regulations. Such regulations are focused on the protection of information provided by consumers to those involved in financial activities "found to be closely related to banking or usual in connection with the transaction of banking". These activities have been deemed to include "appraising real or personal property." (Quotations are from the Federal Trade Commission, Privacy of Consumer Financial Information; Final Rule, 16 CFR Part 313)
__________________
You have been removed from this discussion.
  #3  
Old 09-20-2004, 08:28 PM
CANative's Avatar
CANative CANative is online now
 
Join Date: Jun 2003
Location: Ukiah, CA
State: California
Professional Status: Certified Residential Appraiser
Posts: 47,212
Default

Definition of "Client"

Quote:
CLIENT: the party or parties who engage an appraiser (by employment or contract) in a specific assignment.

Comment: The client identified by the appraiser in an appraisal, appraisal review, or appraisal consulting assignment (or in the assignment workfile) is the party or parties with whom the appraiser has an appraiser-client relationship in the related assignment, and may be an individual, group, or entity.
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)
__________________
You have been removed from this discussion.
  #4  
Old 09-20-2004, 08:31 PM
CANative's Avatar
CANative CANative is online now
 
Join Date: Jun 2003
Location: Ukiah, CA
State: California
Professional Status: Certified Residential Appraiser
Posts: 47,212
Default

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.
__________________
You have been removed from this discussion.
  #5  
Old 09-20-2004, 08:39 PM
Ben Vukicevich,SRA's Avatar
Ben Vukicevich,SRA Ben Vukicevich,SRA is offline
 
Join Date: Feb 2002
Location: Stratford, NJ
State: New Jersey
Professional Status: Certified General Appraiser
Posts: 4,305
Default

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  
Old 09-20-2004, 08:50 PM
Mr Rex's Avatar
Mr Rex Mr Rex is offline
 
Join Date: Jan 2004
Location: X Marks the spot
State: North Carolina
Professional Status: Certified Residential Appraiser
Posts: 26,350
Default

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.
__________________
You talking to me?
  #7  
Old 09-20-2004, 09:03 PM
CANative's Avatar
CANative CANative is online now
 
Join Date: Jun 2003
Location: Ukiah, CA
State: California
Professional Status: Certified Residential Appraiser
Posts: 47,212
Default

Having a copy of a report does not make someone an intended user.
__________________
You have been removed from this discussion.
  #8  
Old 09-20-2004, 09:26 PM
Mr Rex's Avatar
Mr Rex Mr Rex is offline
 
Join Date: Jan 2004
Location: X Marks the spot
State: North Carolina
Professional Status: Certified Residential Appraiser
Posts: 26,350
Default

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?
__________________
You talking to me?
  #9  
Old 09-20-2004, 09:31 PM
Ben Vukicevich,SRA's Avatar
Ben Vukicevich,SRA Ben Vukicevich,SRA is offline
 
Join Date: Feb 2002
Location: Stratford, NJ
State: New Jersey
Professional Status: Certified General Appraiser
Posts: 4,305
Default

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  
Old 09-20-2004, 09:41 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
Posts: 40,662
Default

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.
__________________
"Bigamy is having one wife too many. Monogamy is much the same." Oscar Wilde
Sponsored Links

Closed Thread


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump




Copyright © 2000-, AppraisersForum.com, All Rights Reserved
     Terms of Use  Privacy Policy
AppraisersForum.com is proudly hosted by the folks at AppraiserSites.com

Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
Partner Sites:
AppraiserUSA.com - National Appraiser Directory AllDomainsUSA.com - Domain Name Registration
DeadbeatListings.com - Deadbeat ListingsAppraiserSites.com - Web Hosting for the Professional Real Estate Appraiser
Find FHA Appraisers - FHA Appraiser Search Commercial Appraisers - Commercial Appraiser Search
Relocation Appraisal - Find Relocation Appraisers Domain Reseller - Business Opportunity
Home Security Buzz - Home Security Info Radon Testing - Radon Gas Info
My Medicare Forum - Medicare Info Stop Smoking Help - Help Quitting Smoking
CordlessPhoneStore.com - Great Cordless Phones AndroidTabletCity.com - Android Tablet Computers

Follow AppraisersForum.com:          Find us on Facebook            Follow us on Twitter


All times are GMT -5. The time now is 11:00 PM.

SiteMap: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93