Changing borrower name issue:

[Zoe]

Even if there is a new assignment you don't need to do a new inspection.

But I would have to report on the transfer unless the title opinion was dated before my original inspection date or effective date. I am totally assuming same client and same intended use and user.

 

[Zoe]

I am totally assuming the intended use of this appraisal is for mortgage financing purpose with same client. I have no problem with new assignment instead of revision. Just send me the new title opinion if subject transferred after my effective date and assignment was engaged.

I would set SOW if new inspection was required and new effective date.

 

[J Grant]

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.

So what? We are not detectives or title agents or attorneys. Any borrower identity issues are a realm of the lender, not the appraiser.

It would seem that the borrower or borrowers, after they signed the contract, decided to create an LLC and purchase using the LLC.

Doing that is legal and it is not the job of appraisers to intefere with it. We do no need to disclose it of course.

 

[DWiley]

-its the fact that the borrower didn't exist as of the effective date of the appraisal. .

And?? This is a good example of one of the reasons that USPAP requires both an effective date and a report date - to establish the context of the appraiser. As the borrower has no effect on the MV of the property, the borrower's name is not an appraisal issue.

 

[Zoe]

You have to realize most preliminary work has already been done before appraiser is ever engaged. The lender is just ready to close the loan if they can with a perfected mortgage.

The appraiser can come in way over or under what borrower or seller or buyer or agent or lender thinks, or whoever. Then things have to be negotiated.

Always remember borrower gets a copy of your appraisal.

I come in way over what some homeowners, buyers and sellers and agents and client or whoever think. I come in lower sometimes too. I rarely hit contract price or whatever homeowner or whoever thinks.

I like to read motivations from market participants.

 

[Zoe]

Just remember, the borrower of your client for mortgage financing purposes is likely getting a copy of your appraisal. I still have borrowers saying can you send me a copy?

I say no, but please call your lender and they should send it to you.

I have real estate agents ask me that too and sellers. I say NO. I can't do that.

 

[Sadie]

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.

For a small fee, I will do new assignment with new inspection and new effective date.

Maybe eve do the new assignment for free just to get the darned thing off your desk

 

[BRCJR]

I think there is somewhere in the SOW rule (?) that the borrower is part of the assignment conditions. I agree with you that if the borrowing entity didn't exist as of the effective date, they can't be the borrower. Isn't there an FAQ on this?

Again, if you want to keep them, offer to do a new assignment with a new effective date. It has been my experience that some of the hard $$ lenders can have a problem with USPAP and ethically produced appraisals.

So you are going to go inspect the property again or do a new appraisal without an inspection?

 

[Sadie]

You have to realize most preliminary work has already been done before appraiser is ever engaged. The lender is just ready to close the loan if they can with a perfected mortgage.

The appraiser can come in way over or under what borrower or seller or buyer or agent or lender thinks, or whoever. Then things have to be negotiated.

Always remember borrower gets a copy of your appraisal.

I come in way over what some homeowners, buyers and sellers and agents and client or whoever think. I come in lower sometimes too. I rarely hit contract price or whatever homeowner or whoever thinks.

I like to read motivations from market participants.

I have a client that actually does almost nothing upfront and that caused a ton of revisions, explanations etc. Its all LO driven. Only when the LO is happy (or just done) with my report does it go to UW, which is a different can of worms. Yes, they pay well, and I do factor all the extra work into my fee. Don't expect the lender/client to know what is good for them.

 

[Sadie]

And?? This is a good example of one of the reasons that USPAP requires both an effective date and a report date - to establish the context of the appraiser. As the borrower has no effect on the MV of the property, the borrower's name is not an appraisal issue.

"After delivery, I was asked to change the borrower’s name to an LLC. Upon checking, I discovered that this LLC did not legally exist as of my appraisal's effective date—it was formed several days after my inspection."

If the entity didn't exist as of the report date (which isn't clear), your argument doesn't hold. They were just a twinkle in their members eyes. Its a non issue, unless things go south and your appraisal is in the cross hairs. I think we have all seen where an appraiser completed a USPAP compliant report and has been found negligent over something a judge or attorney thought should have been addressed. Its pretty simple to make it a true non issue.