Converting A Loan From VA To Conventional

[psines]

I received an order through the VA, now the lender underwriter is contacting me asking me for another form of the report be submitted, is this allowed per USPAP? Or do I need the permission of the VA?

 

[Deleted member 152047]

If the client and intended user are different from your first report I would reach out to the VA for permission (*I am not a residential appraiser). There have been times that a different lender has gotten their hands on an appraisal of mine prepared for one of my clients. I typically reach out for permission from my client and disclose the prior appraisal in the certification of the new report (if the original client provides permission).

It may be different in the residential world, but this was always the best practice for me. Also, you should charge the new client!!

 

[RSW]

The VA is your client. So it is not ok to just convert it to a conventional appraisal. Different client, different intended user, and different intended use.

 

[Cob]

Charge them full fee and see how quick they change their mind......

 

[Don Clark]

If the client and intended user are different from your first report I would reach out to the VA for permission (*I am not a residential appraiser). There have been times that a different lender has gotten their hands on an appraisal of mine prepared for one of my clients. I typically reach out for permission from my client and disclose the prior appraisal in the certification of the new report (if the original client provides permission).

It may be different in the residential world, but this was always the best practice for me. Also, you should charge the new client!!

I agree, and it may of necessity be a new assignment since the scope of work is considerably different for a VA as soopsed to a conventional appraisal.

 

[Tru Red]

I have been asked and done this many times. It's a new request. I typically charge them a reduced fee. But not too reduced since they almost always want a cost approach added and sometimes other stuff the VA does not need or want.

 

[Tom4value]

Any time you get a request for a new report where the client(s) have changed in any way (add one, drop one or new one), it is a new assignment; new appraisal file and, unless the new client says otherwise, new effective date.

Regarding permission, most appraisers think you need permission from the previous client. According to USPAP, you do NOT need permission. You just need to disclose to the new client that you performed an appraisal on the property within the last 3 years.

BUT

Even though you do not need permission from the original client to perform another appraisal, the original client had the right to say do not perform another appraisal on this property for another 3 years and you must honor it. Chances are that was never stipulated at the time. However, to cover your butt, I would ask them anyway so they don’t come back later and say that they didn’t giver permission.

 

[Tru Red]

"Even though you do not need permission from the original client to perform another appraisal, the original client had the right to say do not perform another appraisal on this property for another 3 years and you must honor it".

Huh?

 

[Deleted member 152047]

the original client had the right to say do not perform another appraisal on this property for another 3 years and you must honor it. Chances are that was never stipulated at the time. However, to cover your butt, I would ask them anyway so they don’t come back later and say that they didn’t giver permission.

This is not true unless it was part of your original engagement. It is just good business practice to this. You don't want your client blindsided on something.

 

[Tom4value]

"Even though you do not need permission from the original client to perform another appraisal, the original client had the right to say do not perform another appraisal on this property for another 3 years and you must honor it".

Huh?

When you did the original appraisal, the client can say, do not do another appraisal for anyone else on this property for 3 years. If they say that, you cannot do another appraisal. If they didn’t, you can do another one without first gaining permission, according to USPAP.