Can appraisals be transferred to another lender?

[Tom4value]

What if the original client (lender) you to change the lender name to the new lender?

Do you mean if they ask you to change it?
The answer is still no. The client still owns the appraisal and them telling you to "change it to the new lender" does not change that.

Also, in practice, it is a bad idea. 1. The client is the lender, which is multiple employees. If an LO or even an underwriter gives you the "OK" to change it and another co-employee has a problem with it, you are on the hook. 2. The new lender now thinks they are your client. They may have a whole new set of stips for you. You are changing things in a report for free.

Bottom line, stick to USPAP.

 

[sputnam]

What if the original client (lender) you to change the lender name to the new lender?

Doesn't matter. The Client for the assignment is always the Client. It's not 100% clear whether you can revise the report to add additional Intended Users after the fact. Probably depends on whether it changes the Scope of Work or not. The safest course, if the new Lender wants their name on the report, is new assignment. Besides..... why would you want to work for free?

 

[Cob]

What if the original client (lender) you to change the lender name to the new lender?

That is 100% not even needed, the new lender can use the appraisal report they have a copy of that you completed, with the old lender name on it, NOTHING has to be changed, the new lender wants their name on it so they can ask you to make changes that suit their needs, as stated SEVERAL times since the beginning of time, the new lender cam simply send the appraiser an appraisal request and the appraiser can handle it how they see fit.

 

[Tom4value]

Doesn't matter. The Client for the assignment is always the Client. It's not 100% clear whether you can revise the report to add additional Intended Users after the fact. Probably depends on whether it changes the Scope of Work or not. The safest course, if the new Lender wants their name on the report, is new assignment. Besides..... why would you want to work for free?

Actually it is clear. You can’t. It is now a new assignment.

 

[sputnam]

Actually it is clear. You can’t. It is now a new assignment.

I disagree. It certainly becomes a new assignment if the Intended Use is changed. Not sure that it requires a new assignment to add or change an additional Intended User from one FNMA Lender to another. That doesn't change the Intended Use or the Scope of Work.

If you can cite the portion of USPAP or the AO or FAQ, I'd like to look at it.

 

[Tom4value]

I disagree. It certainly becomes a new assignment if the Intended Use is changed. Not sure that it requires a new assignment to add or change an additional Intended User from one FNMA Lender to another. That doesn't change the Intended Use or the Scope of Work.

If you can cite the portion of USPAP or the AO or FAQ, I'd like to look at it.

Appraisal Institute Readdressing, Reassigning, Reappraising

This resource provides guidance on how to handle readdressing, reassigning and reappraising requests in compliance with standards and ethics requirements.

www.appraisalinstitute.org

This is from the Appraisal Institute. It has nothing to do with a change in SOW or intended use. It is Confidentiality and that the report belongs to the client in perpetuity.

What the client does with it is another matter. This is addressed in the link. Another lender can use it without changing the client name.
Hope this helps.

 

[Terrel L. Shields]

There is an entire AO on the subject.

 

[BRCJR]

I disagree. It certainly becomes a new assignment if the Intended Use is changed. Not sure that it requires a new assignment to add or change an additional Intended User from one FNMA Lender to another. That doesn't change the Intended Use or the Scope of Work.

If you can cite the portion of USPAP or the AO or FAQ, I'd like to look at it.

Definitions (Line 127-128 page 5 USPAP 2024)

Intended User: the client and any other party as identified, by name or type, as users of the appraisal or
appraisal review report by the appraiser, based on communication with the client at the time of the assignment.

 

[Carnivore]

This is threads Topic Title should be changed to "The "Never Ending Story" It always has the same Ending. As s soeeone said above there is an AO for this.

This might explain in part a change to USPAP in regards to a recent recent Inspection/effective date. Where you provide another appraisal and use the recent effective /inspection date.

I don't have the most current USPAP because I have retired but still have a current license, i just don't intend to renew,

 

[sputnam]

Appraisal Institute Readdressing, Reassigning, Reappraising

This resource provides guidance on how to handle readdressing, reassigning and reappraising requests in compliance with standards and ethics requirements.

www.appraisalinstitute.org

This is from the Appraisal Institute. It has nothing to do with a change in SOW or intended use. It is Confidentiality and that the report belongs to the client in perpetuity.

What the client does with it is another matter. This is addressed in the link. Another lender can use it without changing the client name.
Hope this helps.

That's right. The Client for an assignment is the Client forever. However, we said that already.

BRCJR's post points out that the Intended User(s) must be identified at the time of the assignment. On that basis, I revise my position. It's a new assignment... Or... the new Lender comes to understand that banking regs don't require them to have their name on the appraisal report. The transfer of an appraisal between lenders doesn't involve the appraiser.