Confidentiality Rules

[Lilmscity]

Love when this happens! Received an email from a disgruntled borrower downgrading my competencies and establishing his own appraisal principals and value. Photo attached just for laughs. Curious about how my peers handle this situation to stay in compliance with client confidentiality.

I would like to thank everyone for your comments and suggestions. After careful consideration, I felt this was the most appropriate non-provoking response: Upon review of the appraisal for XXXX S. Atlantic Ave, New Smyrna Beach, it has become apparent you are not my Client nor, named as an Intended User in the appraisal report. By law, I am prohibited to discuss or respond to your inquiry. My client will receive a copy of your email along with this response. The client (and any additional named intended users) have exclusive rights to the use of the appraisal. The client has the exclusive right to have a dialogue with the appraiser regarding the appraisal and its results, unless other parties are also authorized by the client. Any questions or concerns must be submitted and address directly with your lender. Due to regulatory requirements and contractual obligations, I cannot discuss appraisal results directly with the borrower or any other party other than the Intended Users identified in the report. My policy is to make sure you are aware of the process you can follow to ask questions. Now that you are aware of this process, there will be no more direct assistance I can provide.

 

[Mike Garrett RAA]

You might want to amend your response slightly to include..."by law I am prohibited from discussing the appraisal with anyone other than the client without the client's permission which I don't have".

 

[residentialguy]

To help ward off communication (and lawsuits) with homeowners/buyers I have always attached a note to them for all my reports:

***Important Information for Borrower and/or Property Owner***
This report was created specifically for the Lender/Client stated above only. This is NOT intended for any purchaser to rely on the appraisal to influence the purchaser’s decision to buy the appraised property, nor is it intended to influence the homeowner in any decision regarding the property or financing. Even though you may pay an appraisal fee or later receive a copy of this report from the Lender/Client, this appraisal report that I have prepared is for the Lender/Client’s use only and written in language and format the Lender requested and understands. No other users are intended or inferred. You are not considered or authorized as an Intended User and are not to use or rely on my appraisal for your own purposes. This appraisal report and all of the appraiser’s work in connection with the appraisal assignment are subject to the limiting conditions and all other terms stated in the report. Any use of the appraisal by any party, regardless of whether such use is authorized or intended by the appraiser, constitutes acceptance of all such limiting conditions and terms stated here and within the report. The appraiser is not to be held liable in any unauthorized use of this report.

If you require an appraisal for your own use or are concerned about the property’s value or any conditions which may affect the property, you should engage an independent appraiser of your own choosing for that use. Because of my duties and confidentiality rules under the Uniform Standards of Professional Appraisal Practice and other regulations and guidelines, I am not allowed to speak with anyone but the Lender about the results of this appraisal assignment. If you have any questions or comments regarding my appraisal, please contact the Lender/Client.


Sincerely,

ResGuy