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Advice Please!

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Jamie Jarosz

Freshman Member
Joined
Sep 25, 2002
Professional Status
Licensed Appraiser
State
California
My boyfriend is refinancing his home with a loan officer that I do a lot of work for, and the loan officer wants me to do the appraisal. I told him that I thought it would be a conflict of interest since I live in the house and my office is here, however he says he spoke to the mortgage company and they said it would be OK. Pls advise!! Would this be violating USPAP?
 

Wally Jones

Senior Member
Joined
Jan 23, 2002
Professional Status
Certified Residential Appraiser
State
Florida
As long as you disclose your relationship in the report, it probably isn't a conflict of interest according to USPAP. It might be better, however, to decline on the grounds you wouldn't want to give the appearance of any impropriety. When faced with one of these, I try to picture myself in front of a judge explaining all aspects of my report. If I feel comfortable that he would understand (and agree with me!), then I go ahead. Otherwise, I run like the wind! :wink:
 

xmrdfghap

Senior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
Florida
I would probably not do it, but there is no prohibition against it......so long as you
1) disclose everything concerning your relationship with the property, and
2) collect in advance and make sure the check clears.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
While you can get around the "conflict of interest", I have found over the years that this is a very bad idea (unless you're ready to get rid of the boyfriend). :lol: Seriously, this can create significant problems between the two of you, especially if the home doesn't make. I generally do not appraiser for friends, etc. just because of this.

Roger
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
I would also (just to cover my rear) get the clients permission in writing... for my self... not to cast aspersions on the boyfriends honestly, but full disclosure in writing makes a much stronger case than 'he said'.

To prevent possible hostility I'd type up the permission/disclosure for them...and then ask them to sign it...

...and make sure my disclosure was PROMINANTLY located in the report not in sub-type on page gazillionsix.

or just decline .. that appearance of impropriety thing would bother me if I thought there was ANY chance the thing could ever turn ugly... ever.

Not to be ugly, but

The mortgage is for how long?
You've known and trusted this guy for HOW long?
Divorce/seperation happens in the most stable of relationships over time...
I wouldn't want to bet the mortgage on it, when my ability to earn a living might be tied in the same bundle...
 
W

walt kirk

Guest
It's not a good idea to appraise the property of friends, family or lovers. I would suggest that you have an appraiser that you are friendly with do the appraisal for you.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Personally, there is no way I would do it. For all the aforementioned reasons.

Besides, by the time you wrote in the report all about your relationship... what UW is actually going to accept it? If you don't disclose, then it becomes an illegal report.

:roll: My recommendation is to just say no.
 

larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
Why does the LO want you top do the appraisal? Just to give you some work or does he believe you will make sure to hit the QV.
 

Jamie Jarosz

Freshman Member
Joined
Sep 25, 2002
Professional Status
Licensed Appraiser
State
California
The reason he wants me to do it is beacause the other appraiser he uses usually takes about 3 weeks to get a report back to him, the value isn't a issue at all. Thanks for all the responses everyone! I think I will get someone else to do it.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
The reason he wants me to do it is beacause the other appraiser he uses usually takes about 3 weeks to get a report back to him

Get some verified data together for the other appraiser. That may help your turn time, and the cost. But like the others, I would not do the appraisal on the house I'm living in, just looks funny.
 
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