Clients name on report

[challenger]

I have been doing appraisals for internet managment companies. They are requesting to remove them as the client. If they facilitate the order it appears to me they are the client and the lender someone else. This looks like it goes against USPAP. I think it should be on there. Can someone point me to the right info.

 

[Eric C]

Well they're just the management company, the client should be stated in the request. They're sub-contracting you to do an appraisal.

Just like if one of my clients send me an order and I sub-contract another certified appraiser to do it I would expect them to put my clients information on the client section not my company.

Am I wrong?

 

[Lee Lansford]

When you are working for an AMC, and the AMC is an agent of the lender, it is appropriate to identify (as the AMC indicates) the lender as the client.

 

[Fred]

If you name the lender as client, you have a couple of problems.

1. The scope-of-work rule says you have to communicate with the client. This is repeated in places like the defintion of intended use.
2. The confidentiality rule says you can't disclose assignment results to anyone (like the AMC) without the client's express authorization.

 

[jeanwillick]

I have some AMC's order with the Client's Name and their Name following, such as HappyBank/more happy AMC.

 

[Charles Knutson]

I have been doing appraisals for internet management companies. ... If they facilitate the order it appears to me they are the client and the lender someone else.

The lender is the client -- the management company is acting as a transactional sub agent for the client. If the lender/client's name is not on the report, they can't use it for a lending decision.

 

[Mike Kennedy]

December 2006 USPAP Q&a

4. APPRAISAL MANAGEMENT COMPANY AS AUTHORIZED AGENT FOR A
CLIENT
Question: I accept assignments from an Appraisal Management Company (AMC) that
has informed me they are an authorized agent for the lenders they
represent. The AMC does not want me to list their name as the client, and
asks that I only list the name of the lender they are representing. USPAP
says the appraiser’s client is the party who engages the appraiser. Is it
ethical to omit the AMC’s name as the client on my reports?​

Response:

Yes. If the AMC is acting as a duly authorized agent for a lender, identifying
only the lender’s name as your client is acceptable.

http://www.appraisalfoundation.org/s_appraisal/sec.asp?CID=12&DID=12

​

 

[Frederick R. Ruffell]

In fact any and all clients can remain un-identified in the report per USPAP. You must retain their idenity in your work file however. Do not confuse clients with intended users. A client may or may not be an intended user.

 

[Fred]

A client may or may not be an intended user

The defintion of intended user says "client and any other party" not client or any other party. The client is, by defintion, an intended user.

 

[Pamela Biggers]

The defintion of intended user says "client and any other party" not client or any other party. The client is, by defintion, an intended user.

Steven:
This is a direct quote from SMT-9 in USPAP.

"An appraiser should use care when identifying the client to avoid violations of the Confidentiality section of the ETHICS RULE. The client may be identified as a person or entity, or as an agent of an intended user. In instances where the client wishes to remain anonymous, the appraiser must still document the identity of the client in the workfile but may omit the client’s identity in the appraisal, appraisal review, or appraisal consulting report."

So it is acceptable to exclude the AMC's name from the report as long as it is contained in the appraisers workfile.

This is also in the same SMT:
"Except when specifically requested not to do so as part of the agreement with the client, an appraiser must disclose the identity of the client and any other intended users in an appraisal, appraisal review, or appraisal consulting report. The purpose of this reporting requirement is to (1) ensure that the client and any other intended users can recognize their relationship to the assignment and report, and (2) ensure that unintended users will not be misled by notifying them that they are neither the client nor an intended user. For example, a statement similar to the following may be appropriate:

This report is intended for use only by (identify the client) and (identify any other intended users by name or type). Use of this report by others is not intended by the appraiser.

If the client’s identity is omitted from an appraisal report, the appraiser must (1) identify the client in the workfile, and (2) provide a notice in the appraisal report that the identity of the client has been omitted in accordance with the client’s request and that the report is intended for use only by the client and any other intended users."

Looks like you have to disclose this in the report though.

So the anwser to the origional post is: Yes it is ok as long as you disclose that the clients identity is omitted at the clients request.