Changing borrower name issue:

[DWiley]

If the entity didn't exist as of the report date (which isn't clear), your argument doesn't hold.

If one changed the name, then one would have a new report with a new report date, and the entity would exist as of that new report date. BTW, I am not "arguing" anything.

 

[J Grant]

"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.

Why would an appraiser check the LLC to see if it existed on the prior date? THAT IS NONE OF OUR BUSINESS.

What we should do is ask for the contract addendum with a change of borrower name sent to us.

Here is a sample comment:

The inspection of X property was done on 03/20/2026. The effective appraisal date of the appraisal is 03/20/2026, with the named borrower on contract, John Jones. On 04/02/2026, the lender forwarded a signed addendum dated 0/4/2026 to the appraiser, that the borrower's name on the contract is changing to Greed and Sons LLC.

THE END.

 

[TerryRohrer]

If one changed the name, then one would have a new report with a new report date, and the entity would exist as of that new report date. BTW, I am not "arguing" anything.

It is amazing that even when a procedure for appraisers is reduced to a succinct, clear instruction, it must be debated ad infinitum. Similar stupidity is in full bloom on Facebook regarding how to report price trends on Page 1 of the 1004. The example provided was that prices have declined over the past 12 months, but have been stable during the past 6 months. Even after the new FNMA selling guide procedures were posted, they are wanting to debate whether or not the "tense" of the wording on the form controls what is reported, and many are trying to shoehorn "fluctuating" into becoming a 4th choice. It is exhausting seeing it, I can't imagine the migraine from seeing it at the volumes you do.

 

[Sadie]

Why would an appraiser check the LLC to see if it existed on the prior date? THAT IS NONE OF OUR BUSINESS.

What we should do is ask for the contract addendum with a change of borrower name sent to us.

Here is a sample comment:

The inspection of X property was done on 03/20/2026. The effective appraisal date of the appraisal is 03/20/2026, with the named borrower on contract, John Jones. On 04/02/2026, the lender forwarded a signed addendum dated 0/4/2026 to the appraiser, that the borrower's name on the contract is changing to Greed and Sons LLC.

THE END.

Agree its not our responsibility, but there are some clients that like to not play by the rules and as self protection, you have to check their work, so to speak. its no big deal in the vast majority of cases. But all you need is that pesky situation that has your appraisal dissected for legal purposes. Those dissecting tend to know nothing about USPAP and are looking for a reason to find fault with your work. It's an easy CYA fix.

 

[J Grant]

Agree its not our responsibility, but there are some clients that like to not play by the rules and as self protection, you have to check their work, so to speak. its no big deal in the vast majority of cases. But all you need is that pesky situation that has your appraisal dissected for legal purposes. Those dissecting tend to know nothing about USPAP and are looking for a reason to find fault with your work. It's an easy CYA fix.

Imo, there are enough problems with the regular work without imagining exotic scenarios - jmo we can al do what we feel comfortable with.

 

[Sadie]

Imo, there are enough problems with the regular work without imagining exotic scenarios - jmo we can al do what we feel comfortable with.

I think of that appraiser who was sued because the smoke detector was labeled as a CO detector.

As it turns out, both the appraiser and the home inspector had each independently inspected the home 18 months prior and both mistakenly reported a few of the smoke alarms present at the home, as CO detectors.

Consequently, both the appraiser and home inspector ended up on the receiving end of a “wrongful death” legal claim.

https://www.workingre.com/killed-by-carbon-monoxide-appraiser-blamed-2/

 

[TerryRohrer]

I think of that appraiser who was sued because the smoke detector was labeled as a CO detector.

As it turns out, both the appraiser and the home inspector had each independently inspected the home 18 months prior and both mistakenly reported a few of the smoke alarms present at the home, as CO detectors.

Consequently, both the appraiser and home inspector ended up on the receiving end of a “wrongful death” legal claim.

https://www.workingre.com/killed-by-carbon-monoxide-appraiser-blamed-2/

So, one lawsuit about which we don't know all the particulars, out of hundreds of millions of appraisals. What are the odds?