Can an appraisal be re-assigned?

[Jo Ann Meyer Stratton]

My answer to the question is NO!

 

[Tim Juska]

You are not really obligated to do anything. If the new lender wants to use your appraisal "as is" they can. They may rely on that appraisal but since its not addressed to them, they are not the intended user so your liability could be reduced if the loan defaults. Thats why they want their name on it.

Since the appraisal was 3 months ago, it may not reflect the current value of the property. Technically, their request calls for an entirely new assignment. Even if the sales have not changed, their appraisal request is as of the current date which means your appraisal should be current.

We all feel for homeowners that do not close loans or jump ship because they are not familiar with our guidelines. They are not aware that appraisals are not interchangeable. The new lender is just looking for the cheap and easy way to get what they want.

 

[Brian Weaver]

From the January 2006 FAQ:

Question:
Is it acceptable to readdress or transfer a completed appraisal report?
Response:
No. Once a report has been prepared for a named client or clients, the appraiser cannot ‘readdress’ (transfer) the report to another party. Simply changing the client name on the report cannot change or replace the original appraiser-client relationship. Therefore, this action is misleading. However, you can consider the request as a new assignment. In so doing, you may establish a new appraiser-client relationship and appraise the property for this new client.

 

[Fred]

The new lender wants to use the original appraisal and wants me to remove the old lender's name and replace it with theirs on the report.

That doesn't sound like re-assigning anything. That sounds like falsifying a certified document.

 

[Jerry Bone Jr]

My question is can the original report be put into a new lender's name without a reinspection?????

How can an Appraiser ask this question? Is USPAP no longer a required course?

 

[Tony V]

How can an Appraiser ask this question? Is USPAP no longer a required course?

Hey Jerry...remember all those posts when the appraiser is told ""all my other appraisers do it"""" The proof that these brokers say this is in the amount of ""questionable"" posts that have been appearing here lately..

Hell, we have posts here from members who go to certain CE classes just so they can nap.
As annoying as it is, we will have to keep answering the same questions until everyone gets it...

BTW...no disrespect meant the the OP but I am wondering what they are teaching in USPAP..

 

[alex gilbert]

That doesn't sound like re-assigning anything. That sounds like falsifying a certified document.

Steven - You get my vote for most relevent response!

zellin - In addition to going over AO-26 in USPAP, take a look at the FDIC letter on appraisal independence (Google "fil0384a"). In particular, check the paragraph that says:

"Altering an appraisal report in a manner that conceals the original client or intended users of the appraisal is misleading and violates the agencies' appraisal regulations and the Uniform Standards of Professional Appraisal Practice (USPAP)."

BTW - this is not new stuff. This letter is dated 2003. This FDIC letter can be a handy document. Send it over to the MB with this section highlightled.

 

[farmguy]

I have a question about what constitutes a new file or new assignment.

Same scenario this guy mentioned at begining of thread. A new lender calls and says old effective date is ok and all I want you to do is readress. You say can't do that it will need to be new assingment. You can use same sales, same effective date, same photos, same everything. Assuming you did not use any confidential data in 1st report that you can not use in second. What beyond getting out a new manilla folder and sending a new engagement letter is involved ?

If it is new assingment do you have to state in report I did it last month for xyz? If you create new file you are not "Altering an appraisal report in a manner that conceals the original client or intended users of the appraisal is misleading and violates the agencies' appraisal regulations and the Uniform Standards of Professional Appraisal Practice (USPAP)." USPAP didn't let me alter it, they made me "create new file with new client". If it is new assignment I don't know that you would be required to state you did it for xyz. I didn't sleep through last USPAP update. I have asked this question and you just get the "well it has to be a new assignment".

Based on the way I read USPAP and related statements and opinions I don't get the impression that "it has to be a new assignement" is that much more involved than readdressing.

Shoot away

 

[Wyoming]

This podcast gives some insight to the lenders side in this question:

http://www.appraisalpodcasts.com/Files/Podcast1.mp3

 

[CMoye]

I am a bit late into this discussion. From a regulated institution's viewpoint, here is a exact quote from the an Interagency Guidance titled INDEPENDENT APPRAISAL AND EVALUATION FUNCTIONS issued on 10/3/03 as a clarification of the "Interagency Guidelines for Real Estate Appraisals and Evaluations" issued in 1994:
"Institutions may not use an appraisal prepared by an individual who was selected or engaged by a borrower. An institution’s use of a borrower-ordered appraisal violates the agencies’ appraisal regulations. Likewise, institutions may not use "readdressed appraisals" -- appraisal reports that are altered by the appraiser to replace any references to the original client with the institution’s name. Altering an appraisal report in a manner that conceals the original client or intended users of the appraisal is misleading and violates the agencies’ appraisal regulations and the Uniform Standards of Professional Appraisal Practice (USPAP)."
In addition to the USPAP, this makes the banking viewpoint pretty clear.