E&O Binder in reports is DANGEROUS

[VolcanoLvr]

Why do appraisers persist in putting their E&O Binder (and also a FULL Size copy of your license) in reports??

I just sent this messsage to appraisers in my area to warn them about a particular lender:

XYZ Mortgage will be fishing for another FHA appraiser for a purchase of a FannieMae owned home in Cityville.

Buried in the fine print of their order acceptance is the ‘requirement’ to include a copy of your E&O Binder in the appraisal report.

This is stupid, and a dangerous issue for appraisers. I recommend that you don’t do that, but instead provide the Binder separately to the client outside the report.

I absolutely refuse to include my E&O binder in any report, for any client, ever. This policy is backed up by E&O insurance providers.

If more appraisers will QUIT enclosing E&O Binders in reports, that so-called ‘requirement’ will end because clients will not be able to find an appraiser willing to put their neck on the chopping block, to make being sued easier.


Please people.....think about automatically complying with these stupid requests just because it's in an order form.

 

[William K]

Not that I disagree but isn't that like asking appraisers to quit accepting low fees and unreasonable turn times?

 

[Tony V]

Seems to be a "package" thing....m2:

 

[VolcanoLvr]

I don't accept low fees or unreasonable turn times.

And I turn down assignments if the manditory requirement is to include the binder page.

It really means the AMC or direct lender is not doing their job.

 

[ctapraser]

Why do appraisers persist in putting their E&O Binder (and also a FULL Size copy of your license) in reports??

I just sent this messsage to appraisers in my area to warn them about a particular lender:

XYZ Mortgage will be fishing for another FHA appraiser for a purchase of a FannieMae owned home in Cityville.

Buried in the fine print of their order acceptance is the ‘requirement’ to include a copy of your E&O Binder in the appraisal report.

This is stupid, and a dangerous issue for appraisers. I recommend that you don’t do that, but instead provide the Binder separately to the client outside the report.

I absolutely refuse to include my E&O binder in any report, for any client, ever. This policy is backed up by E&O insurance providers.

If more appraisers will QUIT enclosing E&O Binders in reports, that so-called ‘requirement’ will end because clients will not be able to find an appraiser willing to put their neck on the chopping block, to make being sued easier.


Please people.....think about automatically complying with these stupid requests just because it's in an order form.

My provider has also said they have no issues if an appraiser wants to include this in the report, I give but not with report. Again, if someone wants to sue the appraiser you will save about 3 days not having this in a report, their lawyyer is going to call and get it anyway. I do not believe having it in a report will encourage someone to sue. People who do that crap will do it anyway.

 

[JTip]

Contractors put a GL/WC/BusAuto 'certificate of insurance' in all bids to general contractors/government jobs everyday.

Do not put a copy of your declaration page in your report.

Not sure what the big deal is about putting your scanned license in the report. When scanned it clearly says 'COPY' in the background.

 

[EDWARD BERRY]

According To A Teacher Of Bankers-it Is Illegal For Lender To Request Copy Of Lic.

 

[Pilgrum]

According To A Teacher Of Bankers-it Is Illegal For Lender To Request Copy Of Lic.

Would you please provide a citation including the law that states this?

 

[ctapraser]

According To A Teacher Of Bankers-it Is Illegal For Lender To Request Copy Of Lic.

What

 

[sputnam]

Appraisers include copies of their E&O in appraisal reports because some clients say they have to.