So, I'll add to the list of why E&O insurers don't want to cover "evaluations", in my opinion, is because, appraisers might think they sent an appraisal, and borrower's might think they got an appraisal, Because what they both are seeing says "appraisal". But, what actually winds up in a loan file - if someone actually saves the loan file - could have been changed to say anything at all. Because really, all that's needed is a number with someone else liable for the number.
Why in the world would lenders do that, conspire so the appraiser "thought" they sent an appraisal and the borrower "thinks" they got an appraisal? Was the evaluation wearing a disguise? A report would either say evaluation, or appraisal.
The lender or AMC who handled the order would not risk fraud charges just to profit more from what borrower paid...they are already profiting like pigs at slop from the split of appraisal fees and will likely do the same with evaluations, however they would not hoodwink borrowers and appraisers as to which product is which, nor "Change the report to say anything at all " (fraud)