appraisal copy - who is entitled and why

[George Wynn]

I have a home that I personally flipped & am posing a question I have encountered. Buyer doing FHA financing. Purchase price over 100% of prior sale price & length of ownership by me between 90 & 180 days. This triggers need for 2nd appraisal, which cannot be paid for by buyer. I paid second appraisal fee, as per lender requirements. My question is... does a buyer get a copy of the appraisal on their home because they paid for it? Secondly... if that is the correct rationale, am I entitled to a copy of the 2nd appraisal? I am obviously not entitled to the 1st appraisal copy, but, if paying for an appraisal is the reason for the customer getting a copy, then I am entitled to the 2nd appraisal copy. I have posed this question to the Denver HOC & have not heard back, as of yet. Any feedback would be welcome

 

[AnonApprsr]

Paying for an appraisal is not reason for a right to get it. It's also not the reason why the buyer gets a copy of the first one.

 

[CANative]

You're not applying for credit so you have no right to the appraisal report.

And I don't understand why YOU had to pay for the second appraisal. I would think the lender should be paying for it.

 

[George Wynn]

so... is your response documented somewhere, or, simply a viewpoint? Just asking you to cite your source, as it is different than my rationale. Also... the u/w informed the LO they would not be paying for the 2nd appraisal, so, charge the seller. I paid, simply to not hold up the process.

 

[Howard Klahr]

I don't mean to be disrespectful or anything, but why is it that a certified residential appraiser does not understand the confidentiality rule and the concept of client and intended user? These issues are addressed in USPAP.

 

[CANative]

There is plenty of documentation in state laws and federal regulations which mandate that the borrower is entitled to a copy of the appraisal report. There is nothing in any law that mandates a right to the copy by anyone else.

So the onus would be on you to prove you have a right to a copy.

 

[Terrel L. Shields]

is your response documented somewhere, or, simply a viewpoint? Just asking you to cite your source, as it is different than my rationale. Also... the u/w informed the LO they would not be paying for the 2nd appraisal, so, charge the seller.

Lending laws require a bank to give the BORROWER a copy. All other laws require the APPRAISER to provide a copy ONLY to the CLIENT and the INTENDED USERS...i.e.- FHA... no one else. And that is found in the 4150.2 manual, also check the interagency guidelines.. http://www.FDIC.gov/regulations/laws/rules/5000-4800.html

Examiners also will review the steps taken by an institution to ensure that the individuals who perform its appraisals and evaluations are qualified and are not subject to conflicts of interest....Under the agencies' appraisal regulations, the appraiser must be selected and engaged directly by the institution or its agent. The appraiser's client is the institution, not the borrower. ....

and www.rurdev.usda.gov/ga/Guide%201-400k.pdf

The appraiser will be selected and engaged directly by the Bank or its agent. The appraiser's client is the bank, not the borrower. To maintain the integrity of the appraisal process, the borrower should not participate in the process except for providing information regarding the collateral to the appraiser. Additionally, the Agency will not accept an appraisal ordered by or prepared for the borrower. An appraisal prepared for the borrower also cannot be readdressed to a bank, as it remains a prohibited borrower-ordered appraisal. It is the Agency’s position that any supporting information used by the appraiser must be provided to the lender and not addressed to the borrower. The Federal Reserve requires financial institutions to have an effective, independent real estate appraisal and evaluation program.

 

[George Wynn]

I understand confidentiality, identification of the client & intended users, etc & everything else a certified residential appraiser should understand, however Howard, I am looking as to why the borrower is entitled to a copy of the report. If the rationale for a borrower to be entitled to a copy of an appraisal is a result of having paid for the appraisal, then I am entitled to a copy. THIS IS NOT A TYPICAL TRANSACTION, AS THE APPRAISAL IS BEING PAID FOR BY THE SELLLER. This is new territory & I doubt there are but a handful of appraisers who have done an appraisal on a purchase that was required to be paid by the seller. So "Bite Me" to the boneheads treating this as a "you ought to know that because you're a cert res appraiser" response. It's responses like that which cause appraisers not to want to ask questions they are seeking intelligent & supported responses to. Funny Howard, but, the Denver HOC resource team couldn't even answer my question... but, you say I ought to know that because I am a cert res. Perhaps we should be emailing our questions to "Ask Howard". This is new territory, caused by a new federal regulation & if the rationale providing a borrower a copy of an appraisal is based on the payment for said appraisal, then send me (the seller who paid for the 2nd report) a copy of the report I paid for. I know we are bound by a multitude of rules & regs. If nothing else, perhaps a "dumb question" like this could lead to a correction &/or clarification of a "gray area", even though it happens rarely. Maybe they could list the correction in a new section of USPAP called "Frequently Asked Questions that Certified Residential Appraisers Ought To Know". Yeah... That's the Ticket!

 

[CANative]

The borrower is entitled to a copy of the appraisal. In some cases it is predicated on them paying for it. They are not entitled to a copy of the appraisal from the appraiser. They are entitled to a copy from the lender (it's not so much they are entitled to a copy as it is a requirement that the lender provide a copy.) It's a document that is part of the loan process.

In your case you are not applying for credit. Who would have the responsibility or requirement to provide you with a copy?

 

[Green Hornet]

https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/appcode/pdf/hvccfaqs.pdf

Section Q54