Better Business Bureau

[Caitlyn Stuart]

I have received notification from the BBB that I was reported by a homeowner for not submitting a copy of the appraisal to him. The homeowner had decided to go with a different lender and had tried to coerce me into reassigning this report. The original lender refused to release the appraisal due to the fact the new lender could not offer him a lower interest rate. The home buyer and his Realtor was repeatedly told that he was entitled to a copy of the appraisal from the original lender - that he was not my client. Well, of course neither the realtor nor potentional home buyer can understand that concept.

Complaint reads as follows...... "I payed for an appraisal. I never received a copy of that appraisal. I have called over 30 times and left several messages to return my calls/messages. Owner will not answer my calls and refuses to return my calls/messages. I have been trying to contact her for more than a week".

FYI - last Friday when I was out of the office (in the hospital the entire day with my elderly mother) potentional home buyer made hang up calls to my phone at 12:04; 12:13; 12:14; 12:17; 12:27; 12:39; 4:59; 5:00; 5:03 and 7:52. Now I am irritated and have no legal obligation to return his call so I contacted his Realtor and reitterated that his original Lender was the one that had to release this appraisal. She obviously did not relay the message.

So how would any of you respond to this issue?

 

[JRS at OBX]

I would respond to the BBB explaining the situation. Write a short letter detailing the client confidentiality relationship and state that the lender is the client as per the rules set by the state appraisal board. To do otherwise would be a violation and you could find yourself in front of the board.

The BBB will forward a copy to the homeowner and that will likely be the end of it as far as the BBB.

 

[Smokey Bear]

Send them a copy of the borrower's receipt that you had them sign, that told them you could not give them a copy, but also told them the federal laws that allow him to get a copy from the lender. End of problem.

 

[lizhorvath]

Both excellent suggestions.

Cut and dry, you educate the BBB on why the claim is unsubstantiated, and they'll have to wipe you off the slate. Showing the receipt you had them sign is perfect.

 

[c w d]

You got a complaint from the BBB. Are you a member? If so, tell them to sweep it under the rug or you're pulling your membership. If you're not a member ask them about their membership costs. I'm sure if you join they'll be more than happy to take care of the complaint for you.

The BBB is worthless. I'd place the BBB just under used car salesmen when it comes to credibility. Years ago I needed to get an engine rebuilt. I checked around and called the BBB about a mechanic I had decided to use. They indicated 0 complaints in the past few years. Great! I give the guy my vehicle and pay him half up front for the job. 4 months later he returns my vehicle. 2 months after that an engine bearing goes out. 3 months after that the EPA calls me at work. Apparently this guy had been removing emission control devices and the cars tended to burst into flames. Personally, I wouldn't sweat the BBB. In fact I'd tell them what to go do with themselves.

 

[ghrousseau]

I have received notification from the BBB that I was reported by a homeowner for not submitting a copy of the appraisal to him. The homeowner had decided to go with a different lender and had tried to coerce me into reassigning this report. The original lender refused to release the appraisal due to the fact the new lender could not offer him a lower interest rate. The home buyer and his Realtor was repeatedly told that he was entitled to a copy of the appraisal from the original lender - that he was not my client. Well, of course neither the realtor nor potentional home buyer can understand that concept.

Complaint reads as follows...... "I payed for an appraisal. I never received a copy of that appraisal. I have called over 30 times and left several messages to return my calls/messages. Owner will not answer my calls and refuses to return my calls/messages. I have been trying to contact her for more than a week".

FYI - last Friday when I was out of the office (in the hospital the entire day with my elderly mother) potentional home buyer made hang up calls to my phone at 12:04; 12:13; 12:14; 12:17; 12:27; 12:39; 4:59; 5:00; 5:03 and 7:52. Now I am irritated and have no legal obligation to return his call so I contacted his Realtor and reitterated that his original Lender was the one that had to release this appraisal. She obviously did not relay the message.

So how would any of you respond to this issue?

Well, as you have stated and know the borrower is not your client. The lender is the client. The borrower must submit a request in writing for a copy of the appraisal report to the lender or broker. The lender or broker is the one in violation of reg B. You can site Reg B and RESPA. Here a link to a compliance directory.

http://www.complianceheadquarters.com/ContentDetails/Mortgage101.aspx

You can also find the same verbiage on the HUD website. I would request the BBB remove the complaint as you are complying with USPAP and current Federal lending laws. If it becomes a problem and hurts your business, have an attorney write a nasty letter to the BBB. You are acting in compliance with federal and state lending laws and have done nothing wrong.

Good luck.

 

[Terrel L. Shields]

I also would file a harassment charge against the turkey if he keeps calling. That is insensible.

My reply to BBB would be short and terse. Under Fed. regulation I am forbidden to provide a copy of the report to the borrower unless they are identified as an intended user. If identified as an intended user, the appraisal is ineligible for use in a federally related transaction. I was hired by the client. The client, under disclosure laws, is obliged to provide the copy of the appraisal to the borrower and the borrower therefore is barking up the wrong tree. He has that report available to him thru the lender by written request and the appraiser (me) has no responsibility to respond to him nor am I legally allowed to provide that report without the permissions of the client. Please tell the homeowner to go %$#^ himself.

 

[Roy Courtney]

Caitlyn,
I do not know if you are also a Realtor but it would not matter. Give the BROKER a call and explain what is going on with the agent. Advise the broker that this is a courtesy call giving them an opportunity to get it straight with their agent before you have to file a formal complaint with the Board of Realtors professional standards committee. I bet they will thank you and you will see this end very quickly!

 

[Mike Boyd]

Send them a copy of the borrower's receipt that you had them sign, that told them you could not give them a copy, but also told them the federal laws that allow him to get a copy from the lender. End of problem.

Puleeze! How many appraisers get something like that signed?

A release is not needed to do a new appraisal. You should have told the borrower to have the new lender call you. All they would have to do is order a new report. The fee is negotiable or you can do it for free. To avoid this type of thing, you could ask your original client to send the borrower a copy of the report AS REQUIRED BY FEDERAL LAW.

The BBB has no standing on legal issues. You should call them and tell them that it is a legal issue and to butt out or face the consequences of a slander suit.

 

[Caterina Platt]

Puleeze! How many appraisers get something like that signed?

On each and every COD report. The following verbiage was shared right here on the forum about 6 or 7 years back. I'll share it again for those who'd like to copy and paste away:

As a courtesy to our client, the appraisal fee is to be paid by the borrower to the appraiser for an honest, unbiased opinion of estimated value. PLEASE BE ADVISED THAT BY PAYING THE APPRAISAL FEE YOU ARE NEITHER GUARANTEED A PREDETERMINED VALUE OR A LOAN FROM THE LENDER. Our service is limited to informing the lender of the market value of your property. Any questions you have relating to the loan process need to be directed to your lender. You may be entitled to a copy of the appraisal report under the Fair Credit Reporting Act, which you will need to obtain from the named client. Under the confidentiality section of the Uniform Standards of Professional Appraisal Practice, (USPAP) appraisers are under a strong obligation to our client, and may not discuss the results of the appraisal with anyone other than the mentioned client.