Borrower wants a copy of Appraisal

[Ross (CO)]

Jeff, check with your state Board of R.E. Appraisers office, or their website. They may already have such a statement addressing this issue and you can print it up and have a copy in your clipboard, etc. The state of CO's Bo.R.E.A. website has it, I've got it handy, but I never seem to give it out. That bridge is already crossed when I am either setting up the appmt. and the h/o asks, or when I am leaving the house and they ask. If the party who engaged my services is NOT the h/o, they do not get a copy from me. I will always say "their copy" will be sent to my client, and "under Federal law that person or company must send out your copy to you". I always remind them that sometimes it requires the h/o's direct request for it, and that may have to be done in writing, as it is not automatic that the lender "remembers" to send it to them. In this day of EDI'd and e-mailed reports to clients that extra copy for the h/o is something which must be printed by the client.....this may be a formidable task for many of them since the one we used to print up, that extra "hard" copy, is not generated by us in these situations.

 

[Larry Lyke]

Firstly, I recommend simply letting the borrower know -- ONLY WHEN ASKED -- that the appraisal is being done at the lender's request and to contact them if they want a copy of the appraisal.

YOU DON'T HAVE TO GO ANY FURTHER, especially if you are ready to leave the house headed for your car.

Yet, on a serious note, I NEVER EVER KNOW wholly-exactly what arrangement-relationship the borrower has with the LO-lender, so almost any, even the slightest entanglement by me with the borrower constitutes POTENTIAL difficulty for me. And, we never know how many he said-she said things borrowers try to feed the LOs about us that AREN't true, do we.

I use lots of smiles and a teeny weeney bit o' happy talk.

The more the borrower tries steering me, the more I digress about physical matters about the house, like talking-to-yourself things.

 

[DeeDee Armstrong]

Hey Jeff...
I linked onto your web site, but didn't see the pamphlet for the homeowner....

Are you still working on that? Do you need ideas?

-DeeDee

 

[DeeDee Armstrong]

Hey Jeff...
I linked onto your web site, but didn't see the pamphlet for the homeowner....

Are you still working on that? Do you need ideas?

-DeeDee

 

[TEL2002]

Jeff,

Here are a couple of ideas for additions to brochure.

1. What is counted into GLA.
2. What is not considered GLA.
3. Explaination of who is the client.

Terry

 

[MARKETVALUE]

Throw in for good measure that only confirmed sales within the past 12 months will be conisdered for the purpose of your appraisal and no ma'am your house is not worth the highest listing price in the history of your zip code or your neighborhood for that matter.


MRM

 

[Anonymous]

Statement 9 is the USPAP section you should read.

This statement is now in all my reports.
The Client and those listed immediately below are the sole intended users
of this report. The Client is the sole intended user of this report. "Parties who receive a copy of an appraisal...as a consequence of disclosure requirements applicable to an appraiser's client do not become intended users of the report unless the client specifically identifies them at the time
of the assignment." [excerpt from USPAP Statement 9]. The borrower has not been identified as an intended user by the client.
The general statement is found in the Preamble under the Confidentiality section.

Since lenders do have to give a copy to a borrower, they often tell the borrower to get a copy from the appraiser. To do so, you should have a written statement from the lender releasing the report to the borrower. I have had to gently remind a banker or two that they can play by their rules, but I have to play by mine, too. At no time should you release the report to a borrower and refer to them as an intended user because the client must disclose any intended user . .. at the time of the assignment... (see statement above.)

 

[Jim McGrath]

Just got off the phone with a rather aggravated borrower. He wanted a copy of the Appraisal just as soon as it was done. Of course the Bank is my client so I can not give him a copy. I tried to explain to him but he was not happy and didn't accept my answers.

The question is, is there somewhere that states this CLEARLY in USPAP or and an Advisory Opinion or something that I could quote from? I would like to print me up a sheet and quote the law so I could give or read it to a borrower. So they would not think I am making this up. I looked just now but didn't see anything that was clear in USPAP.

Jeff, I can't believe with all those replies you got, not one gave you the answer. Do all the appraisers not know about this? In comes up in more than 50% of the appraisals I do.

So I carry with me on all appraisals a copy of page 69 of the frequently asked questions, question 105, from the Appraisal Foundation. If you don't have a copy, go to their website and look it up and print it out!

Jim

 

[Blue1]

Jeff, think I got this on this forum.....don't remember.....hope it helps.

NOTICE TO BORROWER

REGARDING COPY OF APPRAISAL REPORT


ALTHOUGH YOU MAY HAVE PAID A FEE FOR YOUR APPRAISAL
(EVEN IF YOU PAID THE APPRAISER DIRECTLY), THE LAW PROHIBITS THE APPRAISER FROM PROVIDING YOU WITH A COPY OF THE APPRAISAL REPORT WITHOUT THE CONSENT OF THE LENDER.

HOWEVER, IF YOU PAID A FEE FOR THE APPRAISAL, YOU ARE ENTITLED TO A COPY OF IT FROM YOUR LENDER.

When an appraisal is performed for a lender, the borrower/homeowner is NOT entitled to a copy of the appraisal report from the appraiser. This is because the appraiser’s client is the lender, not the borrower, even though the borrower pays the appraisal fee. A client is defined as the party who directly engages the appraiser to perform the assignment. The client is most commonly a mortgage broker, mortgage banker, or direct lender if the purpose of the appraisal assignment is for a loan transaction
secured by 1-4 unit residential real property (for purchase or refinancing purposes).

Appraisers receive and accept many appraisal assignments from clients specifically instructing them to collect the appraisal fee at the door (or “C.O.D.”) from the borrower. It is considered a
common and generally accepted practice for the appraiser to collect this payment directly from the borrower on behalf of the client to compensate for the appraisal service. However, this does not render the borrower as the client or entitle them to a copy of the appraisal from the appraiser.

The appraiser is required to protect the confidential nature of the appraiser-client relationship, and thus is prohibited by law to provide a copy, or disclose the contents of his or her appraisal report to anyone other than the client. Any licensed appraiser violating this portion of the Uniform Standards of Professional Appraisal Practice may be subject to disciplinary action by the Office of Real Estate Appraisers (OREA).

Although the appraiser cannot provide the borrower with a copy of the appraisal without the client’s permission, the borrower has every right to receive a copy of the appraisal from the lender, provided he or she has paid for the appraisal and the loan involves 1-4 unit residential property. According to California Business and Professions Code Section 11423, a borrower has up to 90 days after the lender has provided notice of their lending decision to submit a written request for a copy of the appraisal.

 

[Jim McGrath]

Jeff, think I got this on this forum.....don't remember.....hope it helps.

NOTICE TO BORROWER

REGARDING COPY OF APPRAISAL REPORT


ALTHOUGH YOU MAY HAVE PAID A FEE FOR YOUR APPRAISAL
(EVEN IF YOU PAID THE APPRAISER DIRECTLY), THE LAW PROHIBITS THE APPRAISER FROM PROVIDING YOU WITH A COPY OF THE APPRAISAL REPORT WITHOUT THE CONSENT OF THE LENDER.

HOWEVER, IF YOU PAID A FEE FOR THE APPRAISAL, YOU ARE ENTITLED TO A COPY OF IT FROM YOUR LENDER.

When an appraisal is performed for a lender, the borrower/homeowner is NOT entitled to a copy of the appraisal report from the appraiser. This is because the appraiser’s client is the lender, not the borrower, even though the borrower pays the appraisal fee. A client is defined as the party who directly engages the appraiser to perform the assignment. The client is most commonly a mortgage broker, mortgage banker, or direct lender if the purpose of the appraisal assignment is for a loan transaction
secured by 1-4 unit residential real property (for purchase or refinancing purposes).

Appraisers receive and accept many appraisal assignments from clients specifically instructing them to collect the appraisal fee at the door (or “C.O.D.”) from the borrower. It is considered a
common and generally accepted practice for the appraiser to collect this payment directly from the borrower on behalf of the client to compensate for the appraisal service. However, this does not render the borrower as the client or entitle them to a copy of the appraisal from the appraiser.

The appraiser is required to protect the confidential nature of the appraiser-client relationship, and thus is prohibited by law to provide a copy, or disclose the contents of his or her appraisal report to anyone other than the client. Any licensed appraiser violating this portion of the Uniform Standards of Professional Appraisal Practice may be subject to disciplinary action by the Office of Real Estate Appraisers (OREA).

Although the appraiser cannot provide the borrower with a copy of the appraisal without the client’s permission, the borrower has every right to receive a copy of the appraisal from the lender, provided he or she has paid for the appraisal and the loan involves 1-4 unit residential property. According to California Business and Professions Code Section 11423, a borrower has up to 90 days after the lender has provided notice of their lending decision to submit a written request for a copy of the appraisal.

Blue, while I always carry a copy of the USPAP page that applies, when an owner asks for a copy of the appraisal, I tell them that the mortgage company should give them a copy. Then I go on and say if the LO doesn't give them a copy I will gladly give them one, but the law requires that I have to get a letter from the lender allowing me to do it. So if they have a problem with the lender, I tell them the courts have always (so far) ruled that if the homeowner pays for the appraisal they are entitled to a copy, but appraisal law says the lender is my client and I can't give them one without the lenders approval. So far, I have not had a problem from the homeowner.

It is like an X-RAY, when the doctor orders one, you pay for it, but I don't know of anyone who gets to keep it.

Jim