I hate when they do the transfer thing!

[sputnam]

As I'm sure every appraiser knows by now, the client is the client is the client...forever. There is no such thing as the appraiser transferring a report to another client. The lenders can transfer appraisal reports to other lenders, but they don't need anything from us to do it.

 

[Smokey Bear]

Back to their original question - unless the house has been modified to accomodate a business, and would need modification back to SFR to be sold and/or satisfy zoning, the question about a home business is moot. You're appraising the structure, as if it were being sold, not the furniture or what the people do in the house. Within reason, of course. A home office is usually just a room with a computer, printer, etc. It's not your job to determine if the owner/tenant has a biz permit.

 

[Webbed Feet]

I would accept the assignment, but not as an appraisal assignment (though I suspect that it would technically be a "valuation service". I would charge $75, and simply write a letter with your response, referencing the original appraisal report. Why create a whole new appraisal assignment when you are simply addressing a non-FHA, non appraisal related concern of the underwriter?

Study up! This is not the original client. An appraiser cannot "Reference" the original appraisal report.

 

[Webbed Feet]

So here is the e-mail that was just sent to me:

Property Address: zzz Anywhere ST NW Albuquerque, NM 87114 Bernalillo

A warm hello, Scott R. Marshall

As you know the FHA Case # and Appraisal Report are good for 120 days to 6 months or up until closing whichever comes first. Quicken Loans is processing the Borrowers mortgage application and we will be closing the client’s loans by using the FHA Report that was completed recently. While we currently have your report, additional information is requested, as noted below. This FHA Transfer Process is verified as a FHA/Government transaction and per HUD GUIDELINES-Handbook HUD 4150.2: "A new appraisal cannot be requested by the new lender (Quicken Loans) if the term of the appraisal is still effective (six months for existing construction and 12 months for proposed construction)". The new lender must use the appraisal already completed if it is still effective. If additional information is required, we must contact the appraiser, send the appraiser a copy of the transfer of case # (attached) and ask that they assist us. For these reasons, set forth by the FHA Authority, a “Release Letter” is not required from original lender. The FHA CASE NO. is “property specific”. The Lender of whom the FHA Case No. is assigned to, may work with the Origination Appraiser, because the loan is being closed with your report. This also applies to One Reverse Mortgage, which is a Quicken Loans mortgage program, licensed and owned by Quicken Loans.

Please provide the additional information needed for HUD to insure the appraisal report as an FHA appraisal and attach the full report to this email as soon as possible. You may also call HUD should you have any questions or concerns of the validity of this request. 1-800-543-9378. The DE (direct endorsement) while under the umbrella of Quicken Loans, is authorized by FHA Authority per attached "Assignment" to submit this request, and who is responsible and accountable for this request, whereby HUD, a government entity, requires appraisers to comply. TSI Appraisal Services, is the AMC for Quicken Loans, is a Quicken Loans Company, and represents the Quicken Loans client for this FHA-HUD required order/request. Amended report can remain in previous lender's name, in lieu of 6 month FHA requirement allowing for "1" appraisal within a 6 month period.

ADDITIONAL INFORMATION REQUESTED by QUICKEN LOANS ‘DE’ (FHA direct endorsed) UNDERWRITER:

*Please comment on if the appraiser noticed any evidence that a business was being run out of the home. Thank you!

FEES: For fees associated with this assignment, please state your Fee for approval “prior” to completion of this new assignment.

Seems like an easy enough request and a comment about there being no business being run out of the house should be sufficient but I'm always conflicted by FHA's circumvention of USPAP in some of these cases and I'm wondering what my peers would do. That and any time someone bombards me with words I'm a bit leery of the whole thing.

The request made in blue font above is vastly misleading. As such, I would forward a copy to my state appraisal board with a request that they consider officially contacting the sending party regarding their intentionally misleading requests being made to the appraisers in the state.

 

[JSmith43]

As you know the FHA Case # and Appraisal Report are good for 120 days to 6 months or up until closing whichever comes first.

For me, 120 days always transpires before 6 months.

 

[CANative]

*sigh*

Why does this keep coming up.

The appraiser has nothing to do with transfers between lenders. Refer this outfit to the other lender.

 

[Non Sequitur]

I've always interpreted the FHA appraisal portability legislation to mean Lender B can use Lender A's appraisal at face value to close a loan.

There is no obligation by the appraiser to do anything for Lender B.

Correct. Lender B either lives with the report or sends requests through Lender A.

 

[ctag1003]

I am having the same exact issue. Lender A was QL and now lender B wants a few corrections/clarifications to the report based on a desk review that Lender B ordered. Lender B sent me the review, my appriasal and FHA transfer docs. The review noted some minor errors to two adjustments and incorrectly disclosed that I made age of comp errors and room count errors (the reviewer clearly relied on MLS data and did not extract basement room/bath counts). Age "errors" were within two years and I used the ~symbol. There were some other typos and minor corrections that were justified. I told Lender B that the request should only come from lender A. Assuming Lender A makes said request can I address this in an addendum for lender A? Why would lender A makes this request as they did not order the review? Any thoughts would be appreciated.

 

[Lee Lansford]

....Assuming Lender A makes said request can I address this in an addendum for lender A? Why would lender A makes this request as they did not order the review? Any thoughts would be appreciated.

Lender A is your client.

You may respond to legitimate requests from your client.

As to "why" Lender A may ask you for 'this' or 'that'...does it matter?

 

[ANNA TODARO]

I have a question along these lines and perhaps should start a new thread. Here is the situation. Complete and REO for marketing purposes for HUD for well known client A in July 2012.

Get an email today requesting a final be completed for a well known lender who was not noted as an intended user on the original appraisal.

Reply to email they were not the client and the purpose was not for lending. Would be happy to complete an FHA compliant appraisal for reduced rate for them.

Receive reply of No thanks will find an appraiser who will complete the final for them.

Email Client A with all the details and explain I am mad my appraisal is going to be used for an unintended use.

Receive response this evening of "While the report is performed to provide HUD with an as-is value so the property can be listed for sale, any buyer going FHA must use the FHA appraisal for his/her loan. What I’ve found in situations such as this, appraisers, even ones on the lender’s roster will not do a final without having done the report themselves. Because of this, the lender has an inspector verify the work has been done, so they can close their file."

This is so wrong on so many levels! The order never mentions the possibility of the appraisal being used for lending. Of course my addendum clearly and specifically states the user and use... Nevertheless they are using this for another purpose and lender. This happened about a year ago but when I questioned it then they never disclosed it was being used for lending also.

Is there anything we can do?