Advisory Opinion 26

[TERRY STAFFORD]

advisory opinion 26 says we cxan no longer change lenders name on an exsisting appraisal report....does this apply to any and all reports which were writen in 2003. i understand going forward lender name changes are not allowed.

 

[Dee Dee]

Welcome to the forum, Terry.
One of the great features that this forum has is the ability to search the archives.
Since this subject has been hashed over in many threads, I would suggest that you do a "search", using keywords such as 'readdress', 'recertify', etc.
You'll have PLENTY to read.

 

[Terrel L. Shields]

quick answer? It applies to any work at any time. If you do a retrospective appraisal that has a date of say, 1975, it does not mean you don't have to comply with USPAP (which did not exist in 1975)

Further, this was done to clarify what the ASB expected in the first place....i.e.- readdressing was not "really" allowed pre-26, it just was done and the language was not plain enough...as is the case for far too much of USPAP.ter

 

[Mountain Man]

A "re-address" is a new request.
Make a new work file, what you charge is a bizniz decision. :mrgreen:

 

[Larry Lyke]

M Legg --

... is onto the magic intent of AO-26 -- Something akin to pretending you aren't helping support Rush Limbaugh's drug habit by being complicit, complacent or a naughty enabling physician who caters to celebrities.

Or, are we appraisers involved in some clandestined business requiring AO-26 goobledygook.

It all started with the "Ten Commandments," I mean the "10 Standards Addenda," or "Whatever." And the people who write this stuff are hired and paid to do just that. Almost every words of USPAP can be cross-referenced until Kingdom Come. That means, eternally! There's no end available, or in site.

Hey, appraisals are passed around like illicit drugs. Your "dealer" knows where you last appraisal is, but only cares about the price of the competiti, not the purity!

Over simplification: You just have to start a new work file, redact any juicy confidential tidbits, change the client name and address and make out a new invoice. UNLESS, of course, the new client wants a new effective date.

Smile.

L- MN

 

[Carnivore]

I will share a recent occurence.

Out of the blue, no warning I get a letter in the fax from a borrower asking lender 'A' to release appraisal to Lender 'B'.

Then the next day I get a letter from Lender A telling me to release the appraisal to lender B.

The next day I get a phone call from lender B asking me when will I send the appraisal with there name on it. They also said that "We dont think its fair for the buyer to pay for another appraisal. No mention of money from them to me for my time.

I say, "Sorry, I am not going to do it." Click

Frantic calls later, "What do you mean your not going to do it?"

I answer, "Because I dont want to, I dont have to, and I am busy."

Whooo hooo did the world get flip on it side over that.

They then call later and ask again. I told them your wasting my time and time is money and I aint doing it."

"Will pay you" Will send you some business."

Uhhhhm, No you wont send me any business and I aint doing it. Bye"

Man were they PO'd!


Guys and gals, that sone way to deal with this.

What do you think?

 

[Pamela Crowley (Florida)]

:rainfro:

You having a bad day Andrew?

 

[CANative]

OK, here's this afternoon's war story.

In October I did an appraisal for Lender A (He sure gets a lot of business for us, doesn't he)

In December, Lender B calls and wants the appraisal. I say no, but you can order a new appraisal. The fee is $zzz. They mail me a check and and I do another appraisal on this property.

One hour ago: Original Lender A calls and tells me he wants me to do an appraisal on that property I did back in October. He was unaware that the borrower had Lender B hire me to do a 2nd appraisal.

I tell Lender A he already has a report, just use that one. He says it's over 90 days old and can't use it. I tell him he's welcome to order a new appraisal, the fee is $zzz. He says fine, and sends a request for a new appraisal.

I don't think lender B knows this is going on, so Lender B will probably be out their appraisal fee.

This is USPAP compliant by the new AO's interpretation. But it is confusing and feels unethical.

What do you think?

 

[Scott Kibler]

I think I'm glad I work in an urban area that makes this more unlikely to occur.

Seriously I would go ahead and do lender A's appriasal. You can't let either lender know about the other due to confidentiality. Lender A would surely be confused (to say the least) if you declined the order. Maybe lender B was not able to close for some unrelated reason. This makes yet another good argument for COD. If the homeowner is paying the freight for shotguning their loan application, the lenders can't get too excited about it.

 

[George Hatch]

Andrew,

I've done that before. Guess what, they found a way to use the original appraisal anyway, as is permitted by law. Just goes to show that if they hear the word 'no' often enough they'll eventually figure out how to do it the right way. Maybe someday they'll even stop asking.