Can a prior appraisal completed for one borrower be used by a new borrower?

[liberated]

I completed an FHA appraisal in May for a pending sale located in my area. I received a phone call from a bank (not the original client) today stating that the bank wants a copy of my appraisal. The bank has a new borrower that wants to purchase this property (apparently the original borrower did not qualify for the loan); moreover, they want to use the appraisal that I completed in May for another company and a different borrower. How is this possible?

 

[Roy Courtney]

The appraisal can be used by a different borrower and lender. However one lender transfers the appraisal to the other. This DOES NOT involve the appraiser in any way! You are not to transfer, reprint, etc. This was discussed in another thread a few days back and should not be hard to find. There was a lot of discussion on it. Good luck!

 

[Michael Tipton]

See the attached document.

 

[Greg Bell]

This needs to be permanent thread.It's obvious many will run into this transfer question.New lender can request loan from old lender through FHA connect.The appraiser is out of the game and the appraisal passes along to the new lender WITHOUT
changing the lender/client........

 

[Fred]

This needs to be permanent thread.It's

Yes, ever since the ASB clarified the issue with AO-26 and AO-27.

 

[Otis Key]

Looks good to me!

B. New Borrower Using an Existing Appraisal. If the transfer is made for a new borrower to use an existing appraisal, the new lender is to collect an appraisal fee from the new borrower. The appraisal fee is sent to the original lender who, in turn, is to refund the fee to the original borrower.

 

[Otis Key]

Yes, ever since the ASB clarified the issue with AO-26 and AO-27.

Ah Steven. Must you be so straight forward about things?

 

[Carnivore]

It does not solve the problem without causing huge business problems for the individual appraiser.

If you wave USPAP and FHA stuff in front of the lender all you get in return is harrassment, guilt trip and a host of others things that are not good for your overall health.

There is only one solution to this recurring problem. FHA MUST be named as a client in all FHA assignments, period! Then all you need as the FHA CONNECTIONS letter showing the transfer from one lender to another by FHA.

See, end of problem. So simple, yet so elusive to supposedly brilliant minds in the FHA and lending community.

 

[SANDY]

It does not solve the problem without causing huge business problems for the individual appraiser.

If you wave USPAP and FHA stuff in front of the lender all you get in return is harrassment, guilt trip and a host of others things that are not good for your overall health.

There is only one solution to this recurring problem. FHA MUST be named as a client in all FHA assignments, period! Then all you need as the FHA CONNECTIONS letter showing the transfer from one lender to another by FHA.

See, end of problem. So simple, yet so elusive to supposedly brilliant minds in the FHA and lending community.

Bingo!!! How hard can that be?

 

[Mike Phillips]

It does not solve the problem without causing huge business problems for the individual appraiser.

If you wave USPAP and FHA stuff in front of the lender all you get in return is harrassment, guilt trip and a host of others things that are not good for your overall health.

There is only one solution to this recurring problem. FHA MUST be named as a client in all FHA assignments, period! Then all you need as the FHA CONNECTIONS letter showing the transfer from one lender to another by FHA.

See, end of problem. So simple, yet so elusive to supposedly brilliant minds in the FHA and lending community.

Yup. Ditto. Another case of "common sense (should) trumps USPAP."

Brilliant minds, absolutely. Especially in the ASB who focus on writing the "grand document" containing very little of which is practical.

Can't wait to see how fast some USPAP instructor will respond with "one size dosen't fit all."