FHA Lender Change Then Request to Change Lender Name

[Xavier Hargrove]

Hello Everyone,

I hope you all have been busy. I just came off of my best month this year, which has brought me to this problem I must figure out.

I completed a 1004 FHA appraisal last month. This month I got a call from a separate lender saying that the loan had been transferred to them and they needed an XML copy as the file copy from the original lender was corrupted for some reason. They sent me documentation that the FHA loan number was transferred to them and an additional email for my records where the original lender gave permission to release the appraisal to the new lender. Be aware that the subject did not meet Minimum Property Standards due to a missing railing.

I then got an email today requesting a 1004d from the new lender as the railing had since been put up. The loan processor also requested that the lender information in the report be updated to their lender information and change of concessions due to purchase contract changes. My question is does this call for a new appraisal? To me, it is and calls for a new fee and report, probably hence the under-the-table request rather than going through the AMC. Any thoughts would be helpful.

Appreciate it in advance.

 

[alebrewer]

(a) there is no requirement for you to send the XML to the new lender, or for you to update the new lender's name. The new lender should be able to use the original appraisal 'as is', so don't make any changes to the original appraisal unless you're prepared to engage the new lender in a new assignment. (b) you can perform the 1004D for the new lender.

In either case, make sure not to divulge any confidential information - either when engaged to perform the 1004D or engaged to perform a new assignment.

 

[TerryRohrer]

I hope you declined the request for an xml file. Not your client, not your place to provide confidential information to others. As far as the 1004D, you can put the current lender without a problem...the form is designed to accommodate that. However, I would only accept the assignment under the condition that I would not disclose any confidential information (such as my opinion of value) in the 1004D as it is confidential.

Edit: I would not change the report to include there name. There is a USPAP FAQ pertaining to that request you should refamiliarize yourself with.

 

[sputnam]

Hello Everyone,

I hope you all have been busy. I just came off of my best month this year, which has brought me to this problem I must figure out.

I completed a 1004 FHA appraisal last month. This month I got a call from a separate lender saying that the loan had been transferred to them and they needed an XML copy as the file copy from the original lender was corrupted for some reason. They sent me documentation that the FHA loan number was transferred to them and an additional email for my records where the original lender gave permission to release the appraisal to the new lender. Be aware that the subject did not meet Minimum Property Standards due to a missing railing.

I then got an email today requesting a 1004d from the new lender as the railing had since been put up. The loan processor also requested that the lender information in the report be updated to their lender information and change of concessions due to purchase contract changes. My question is does this call for a new appraisal? To me, it is and calls for a new fee and report, probably hence the under-the-table request rather than going through the AMC. Any thoughts would be helpful.

Appreciate it in advance.

Your original Client for an assignment is the Client for that assignment FOREVER. Lenders can assign your appraisal report to other lenders... but, the new lender does not become your Client for that assignment. If you are complying with USPAP, you can not send a copy of the file to the new lender. If you have an email directly from your original Client giving you permission to provide the new lender with a copy of your report then, you can. You can't ever change the Lender/Client name on the report. They can hire you as a new assignment to appraise the same property either with the same or an updated effective date. Yes.. it is a new assignment. How much you charge the new Client is up to you and should be based on how much time you spend. BTW.. it's complete and utter nonsense. The Lender isn't required to have their name on the appraisal report... as long as both are approved Lenders and the new guys have the transfer documents.

As stated by Terry... all this is in USPAP, the AOs, and FAQs. You should read it.

 

[Tom D]

The 1004d can have the new lender's name at bottom, old lender's name stays at top.
The problem here folks is the the concessions have changed, so now what
FHA don't need new lender's name on old report, and you can't do that any way.
What a conundrum. The new lender is going to make mucho money, but we no pay you. You gotta explain, it aint my rule, it's the state's rules. I just follow them.
Will FHA accept a new appraisal with a different lender when the old one is good for months. If so, i will give you a new appraisal at a discount, so you can make thousands of dollars more than me.

 

[Functional Obs]

Hello Everyone,

I hope you all have been busy. I just came off of my best month this year, which has brought me to this problem I must figure out.

I completed a 1004 FHA appraisal last month. This month I got a call from a separate lender saying that the loan had been transferred to them and they needed an XML copy as the file copy from the original lender was corrupted for some reason. They sent me documentation that the FHA loan number was transferred to them and an additional email for my records where the original lender gave permission to release the appraisal to the new lender. Be aware that the subject did not meet Minimum Property Standards due to a missing railing.

I then got an email today requesting a 1004d from the new lender as the railing had since been put up. The loan processor also requested that the lender information in the report be updated to their lender information and change of concessions due to purchase contract changes. My question is does this call for a new appraisal? To me, it is and calls for a new fee and report, probably hence the under-the-table request rather than going through the AMC. Any thoughts would be helpful.

Appreciate it in advance.

This may have been the first question I ever saw on the AF from back in the early 00s...