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You could say it is a new assignment. If the owner's name has not changed since the original assignment and the appraiser verified with client from title opinion that they had the wrong owner name or original assignment. I think a revised report explaining what happened would be sufficient. The appraiser put in wrong owner name. Same client, same effective date, same borrower, same intended use. Revised report with new name. (correct name).
The whole changing of the borrowers name is not the OP's issue-its the fact that the borrower didn't exist as of the effective date of the appraisal. Its weird and should be at least addressed. Just think-how can someone enter into a legal contract if they don't exist? What if it all goes south? The shotgun lawsuit and finger pointing is going to point out that little nugget of truth. Its a weird situation and I think to be prudent and careful of your license you should figure out a way to CYA.
Your client wouldn't be asking for a revision unless they had proof from a title opinion that you put in wrong owner name or borrower name. Your client knows the borrower name and the owner name. Your client can't get a perfected lien on the subject unless they know the owner and the borrower.
Explain how. Sometimes a client can attach a lien on certain property if you owe them money on something else that you defaulted on. They can go to court and say I want to file a lien because I have judgement that owner has defaulted on another debt they owe me.
OP looked it up and the LLC or whatever wasn't formed until after the effective date. Its a non issue until it isn't. Don't depend on the lender to get it right. They are just pushing to get what they want, not what is correct. If they have a prelim with the borrower name, most likely it is dated after the effective date. TBH, I have never run into this. In may cases its the LO running this, not UW.
Okay. That is not my problem. That is my client's problem. They can bring in the new owner and get them to sign the mortgage to perfect their lien. Give me a new title opinion when you do it.