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E & O Dec. Page

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Paul DelleDonne

Sophomore Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Delaware
As part of an underwriting condition for loan approval (go figure) , I've been asked to send a copy of my state license ( no big deal) and a copy of my E&O Declaration page (potential big deal). Why would that be a condition of approval?. Do have to send the dec.page or can they just take my word for it that YES I do have E & O.
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
That is not completely uncommon. Most lenders want to have it onfile anyway. If this loan was sold to a lender that does not have yours on file, they want it.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
I use liquid paper to block out all the information on my sheet that I send clients. So all they find out is that yes I do have E&O with a specific company but nothing else. No one has every asked for the details that are blocked.
 

Phil Rice

Member
Joined
Apr 22, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Lenders think that by requiring the appraiser to have E&O, it reduces the risk of getting a bogus appraisal. Presumably, someone who has been sued and/or had their license revoked would have a hard time getting insurance.

I suspect that it is a mid/low level paper pusher that deals with this for the lender, they just need an official looking piece of paper that says insurance on it somewhere, they put it in the file, and that is the end of it.
 

Tony Lehn

Junior Member
Joined
Oct 28, 2002
Professional Status
Certified Residential Appraiser
State
Indiana
They only want it to satisfy the needs of a buyer of the paper. Not a big deal.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I let mine hang out there in all it's glory. $100,000 per occurance and $300,000 total. Wasn't much of big deal until the last few months..now seems everyone wants to have a copy of your certificate. Wonder if you can be rejected from an assignment for not having E & O???? The VA doesn't require us to carry it...but most of the appraisers are smart enough to have it.

Brings me to a follow up point. If you screw up by 10% on a market average house of say $180,000 you have a down side of $18,000. If you apply the same 10% to one of those million dollar properties...you are hanging out there $100,000 or more. Guess that is why I don't do million dollar houses. I will leave that to those new, hot, young go getters. You know...those who have only been in the business for a little more than necessary to get certified. :rofl: :rofl: :rofl:
 

John SRA

Junior Member
Joined
Jan 19, 2002
Many of our clients are now requiring that we show proof that we have coverage of at least $1,000,000.

Like others, I simply block out sensitive information.

JC
 

ockyappraiser

Senior Member
Joined
Sep 26, 2002
Professional Status
Certified Residential Appraiser
State
Kentucky
Perhaps I can shed some light on the requirement for asking for E/O insurance. Before appraising, I was with two national Wholesale Mortgage Companies and with National City Bank in their non-conforming mortgage division.

The idea for asking for a copy of your E/O is the same as asking for a mortgage broker's bond. If the loan goes south and a bad appraisal is found, they hit the the appraiser and the E/o Insurnace covers it. They want limits equal to the value of houses appraised.

I never have a problem faxing this info.
 
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