2nd lender wants appraisal in their name

[Doug in NC]

As stated in a previous thread, I just did an appraisal for one lender. A day after inspection, a second lender wants an appraisal on the same property. Homeowner verifies that she has decided to use the second lender, but first lender assured me that they intended to do a loan for the borrower too. I completed and delivered the appraisal to the first lender, as I knew of no reason not to follow through with completion of that assignment as requested.

According to my understanding of the FHA rules, the second lender is to get a copy of the appraisal from the first lender (failure to cooperate could jeopardize mortgagee's HUD approval status). I would call HUD on this, but last time I did it took about a week and a half to get an answer. I don't mind re-doing the assignment for the second lender, but it will save my time to avoid it and proper procedure is for lender 2 to do his own legwork and get a copy of the appraisal from lender 1.

Anyone else ever run into this before? Second lender even obtained the case# (same as that of lender 1) when he sought to get his own appraisal. Can I tell this guy he needs to get a copy of the appraisal from the other lender? Would I be breaking HUD rules if I did an appraisal for lender 2?

 

[Ted Martin]

You're done with the assignment, no longer your problem.

Lender A needs to reassign the appraisal to lender B. Changing the name would constitute a new assignment, which would not be allowed by HUD for the next six months. This opinion is reinforced by the fact that when lender B got the case number it's the same one as lender A's.

 

[Roy Courtney]

Agree with Ted. Not your problem!

 

[incognito]

Lender A needs to reassign the appraisal to lender B. Changing the name would constitute a new assignment, which would not be allowed by HUD for the next six months. This opinion is reinforced by the fact that when lender B got the case number it's the same one as lender A's.

I thought this was the case, too. However, I just had the same situation. FHA transferred the case number to the new lender. I got a copy to confirm. I did a new appraisal, with new effective date, for the new lender. It was a new appraisal assignment, but I cut them a break on the fee, for a new client, same borrower, same FHA #.

 

[Doug in NC]

I finally got a somewhat definitive answer (FHA rep didn't sound too sure of herself). The lady I spoke with at FHA paged through her manual and determined that, YES, lender 2 needs to request a transfer of the appraisal from lender 1 (when an appraisal is less than 6 months old). Glad I finally got lender 2 off my back on this one. Will know how to handle it more quickly next time though.

 

[ZZGAMAZZ]

Got a call & an e-mail and a FHA "Case Transfer" doc yesterday indicating that the new client underwriting stipulation required a new lender name. Does this constitute a new assignment? Does the HUD "transfer" usurp USPAP?

 

[Michael Tipton]

I finally got a somewhat definitive answer (FHA rep didn't sound too sure of herself). The lady I spoke with at FHA paged through her manual and determined that, YES, lender 2 needs to request a transfer of the appraisal from lender 1 (when an appraisal is less than 6 months old). Glad I finally got lender 2 off my back on this one. Will know how to handle it more quickly next time though.

The attached pdf file (4-2) is from FHA Mortgagee's manual. RE: Lender transfers

 

[Michael Tipton]

Got a call & an e-mail and a FHA "Case Transfer" doc yesterday indicating that the new client underwriting stipulation required a new lender name. Does this constitute a new assignment? Does the HUD "transfer" usurp USPAP?

Appendix D page D-9, field #3 indicates that FHA appraisers must comply with USPAP. Additionally, page D-11, field #21 address lender transfers at the request of the borrower. I will not re-address, I will not re-address, etc., ect. m2:m2:

 

[Don Clark]

Got a call & an e-mail and a FHA "Case Transfer" doc yesterday indicating that the new client underwriting stipulation required a new lender name. Does this constitute a new assignment? Does the HUD "transfer" usurp USPAP?

Not unless HUD has a Jurisdictional Exception statement. They likely will not. The issue has already been settled. If new lender wants their name on the report it is a new assignment, and, if you are smart, a new fee.

 

[Charley Horse]

Caution.

...just spent 3 days going back & fourth w/new lender, original lender, and FHA HOC (Philadelphia)... WE CAN NOT CHANGE CLIENT on an existing FHA report; the original client can transfer the report to a new lender, but WE stay out of the process. Once a given FHA Case# is assigned to a given property/report, it cannot be "updated" to accomodate a new lender.

No way am I going to jeopardize my status as an FHA appraiser for a quick buck without explicit instructions from FHA to do anything other than what FHA protocol mandates.