Lender Name Change

[kaepps]

The lender names listed in the request were the primary and secondary lender. The primary lender would have underwritten the loan if the property qualified for FHA. Unfortunately it needed too many repairs so I am assuming the secondary lender will be processing the loan and keeping it "in-house". Having their name on the report saves time and money for the borrowers since they will not need to order a new appraisal. I failed to list the secondary lender in my initial report since it is not common to see 2 lender names on an appraisal request. I did add their name and documented what I did within the report and kept a copy of both and updated the signature page with a current date.

Thanks for all your help and comments.

 

[djd09]

New assignment with a minimal charge.

 

[hastalavista]

New assignment with a minimal charge.

Why is it a new assignment if the clients haven't changed?

(the decision to charge something is a business decision IMO... one I wouldn't opt for, but that's me and another might)

 

[Deleted member 80407]

AMC is requesting I change the name of the Primary lender to the secondary lender that is named in the appraisal request. I know we are not suppose to change lender names but the request specifically has a Primary lender named and a Secondary lender named. This was prepared as an FHA and has the case number on the report. Under USPAP can I make this change on the front page of the report??

EXAMPLE VERBIAGE: The appraisal has been prepared for the specific client (AMC) & (bank or mortgage company & the Department of Housing & Urban Development) as the intended user. On page 1 of the appraisal report, the appraiser should report the bank or mortgage company as the client which is different from the appraiser's client being the AMC.

 

[djd09]

the clients haven't changed

They haven't? Where is the primary lender now? Just gone?

 

[hastalavista]

They haven't? Where is the primary lender now? Just gone?

From what I understand, the clients haven't changed from the original order.
Two entities were identified as the "client" when the assignment was engaged. Does it matter if one of the clients is not going to loan on the property? Sounds like they both relied on the report (one to make the loan, the other to pass on it) They are still both the clients for this assignment, no?

 

[djd09]

They are still both the clients for this assignment, no?

And i thought FHA follows the property and not the lender? So there is no need for a change.

 

[hastalavista]

And i thought FHA follows the property and not the lender? So there is no need for a change.

You are saying the same thing Can said. I agreed with him and I agree with you in that there may be no requirement to change anything.
But, why not change it if it is (a) compliant to do so; (b) easy to do so; and (c) assists the original client?

The OP asked if it could be done. The answer is yes, it can. I'd advise to do it since it isn't a big deal. On that, you and I (and Can) may disagree. You may want to charge for that; that's your prerogative as it is a business decision. As I said before, I'd opt not to charge unless uploading the report a new time was a big PIA. But that's me.

Regardless, it isn't a new assignment (IMNSHO).

 

[Have Laser-Will Travel]

AMC is requesting I change the name of the Primary lender to the secondary lender that is named in the appraisal request. I know we are not suppose to change lender names but the request specifically has a Primary lender named and a Secondary lender named. This was prepared as an FHA and has the case number on the report. Under USPAP can I make this change on the front page of the report??

I think the reason you can't change lender names is that there could be different interests the appraiser should pay attention to with a new client. However, the client is also the party ordering the appraisal and engaging the appraiser. It doesn't sound like the secondary lender engaged you. Of course, AMCs engage us and they aren't listed as Lender. I guess I'm thinking out loud. The assignment hasn't changed and neither have the lenders. I'm thinking it's okay as long as you mention both lenders. You may also want to note the change at the request of the Client since you're going to have two versions of the report floating around out there.

 

[Have Laser-Will Travel]

An appraisal report is supposed to identify the client.
"Client" can be more than one individual or entity. It sounds like you have two entities which are the clients for this assignment.

I'm not sure what the UAD restrictions are for naming multiple entities as clients, but it seems to me that for USPAP compliance, as long as the clients (all of them) are identified in the report, you are fine.

IMO, someone asking you to identify one of the clients and not the other would cause you to violate USPAP.
However, I doubt if there is something nefarious going on; the issue is the format-requirements for UAD upload. Despite the motivations or intent of the request (good, ill, or neutral), if it were me and I had multiple clients for an assignment, each one of them would be named in the report as such. I don't think it is a big deal that only one name fits in the UAD space. I'd comment that due to the UAD formating limitations, one client only can be named in the pre-printed form, but that all clients are identified clearly in the narrative for USPAP compliance.

That's my take; someone else might see it differently.

Good luck!

You said "nefarious".