FHA Lender shopping appraisal

[Mike Boyd]

You are in violation of USPAP. You might want to brush-up on it starting with AO26.

Good luck.

Where is the violation?

 

[Mike Boyd]

Your "client" remains to be the original lender and FHA. If the new lender wants more comps, they must go through that original lender who can then request it from you.

 

[Terrel L. Shields]

I did it. i am done with it. I ain't doing it over.

 

[starmansf]

The appraiser does have a fiduciary responsibility with the lender. Bama is right to charge for extra work. Reports can not be released, regardless of what the lo tells you. The lender can assign an appraisal with a new lender, but the appraiser is out of the loop. The bottom line is that they want addtional work (free work) from an appraiser they did not engage. The whole thing sounds like a new work assignment. Is this wrong?

 

[Webbed Feet]

The appraiser does have a fiduciary responsibility with the lender. <......snip.....>

Mr. Foley,

No, the appraiser does not have a fiduciary relationship with anyone. It is a contractural relationship only. There are no fiduciary duties. The confidentiality is per USPAP.

Webbed.

 

[Kevin Mc]

Mr. Foley,

No, the appraiser does not have a fiduciary relationship with anyone. It is a contractural relationship only. There are no fiduciary duties. The confidentiality is per USPAP.

Webbed.

Once again thank you Webbed. This thread should have ended with Greg Bell's initial post.

 

[Gary Schinagel]

The appraiser does have a fiduciary responsibility with the lender. Bama is right to charge for extra work. Reports can not be released, regardless of what the lo tells you. The lender can assign an appraisal with a new lender, but the appraiser is out of the loop. The bottom line is that they want addtional work (free work) from an appraiser they did not engage. The whole thing sounds like a new work assignment. Is this wrong?

Mike the original thread was to help us as a group indentify the proper protocol for issues regarding multiple lenders involved be it FHA to FHA or FHA to conventional. Which have both proved to be completely different. FHA to FHA is done internally via FHA connection. They have the right to basically transfer you original appraisal within approved lenders without you doing anything in fact your are NOT TO DO ANYTHING manipulating these internal transfers. We still have a problem however if the new Lender is asking for additional information what do we do? The best I have come up with is to VERIFY the transfer via FHA connection if they want additional comps and data and treat it like the original Lender because the intended use per 4150 is the "Client/Lender and FHA/HUD" This verbage which by the way is mandatory. Basically gives them the right to transfer within. Conventional transfers(dont meant to use that word are handeled as you say a new assignment with YOUR discretion as to the fee. As weber says this is a contractual relationship between the Lender/Client and us and this contractual relationship does carry a certian amount of fudiciary duty especially regarding content disclosure to third parties. That is not a good reason to NOT ANSWER THE QUESTION it gets pretty obvious around here about the ability of some in the forum to just use the area as space to blast at people without ANY CONTRIBUTION. They basically are alot of hot air. This topic however one may say is still very much not concrete. What about the additional data if requested by the new internal; transferred FHA Lenders? How long can it go on? when is it considered a new request even via FHA. Let me tell you web has not got the answerrrr. We can let them correct mispelling and interpretations and hopefully THEY CAN BENEFIT from an intelligent discussion from others. I still think there should be a protocol we can get a consensus on regarding this issue because before eveything is the CONTRACTUAL crerating implied fudiciary duty regarding impartiallity AND ownership of the appraisal. Then the intended use. These issues are not resolved at all with A026 or any other provided literature. The forum should help us take this point to conclusion even with critic. But answer the *** question to all who have nothing to add. We together will get the answer'S for YOU TOO!

 

[Webbed Feet]

Oi !

http://www.lectlaw.com/def/f026.htm

Ok class. A person with a fudiciary duty to someone else is REQUIRED to act in the other persons best interests. You are NOT allowed to act in manners adverse or contrary to the interests of a client. Try reading the stuff at the link.

Now then, under USPAP, we are NOT ALLOWED to bias ourselves and act in the "best interests" of our clients...We are required to remain unbiased even if the results of our acts (read that opinions) are not in the best interests of our clients! .. To wit:

Conduct (ETHICS RULE)

<...... snip......>
An appraiser must perform assignments with impartiality, objectivity, and independence, and without accommodation of personal interests.

An appraiser must not advocate the cause or interest of any party or issue.

An appraiser must not accept an assignment that includes the reporting of predetermined opinions and conclusions.

Ok? Do we know the difference now? A person with fiduciary duties is required to be an advocate for whoever they owe the duties. A real estate appraiser is required to not be an advocate of any party.

Therefore, if you have accepted fiduciary duties involving your clients for a real estate appraisal, I would like to put forth that you are in a lot of trouble as you are violating the Ethics Rule of USPAP.

Webbed.

P.S. So our duty of confidentiality is a USPAP thing... not a fiduciary thing. It can't be fiduciary as we are not allowed to advocate for our client's interests. We can't be an advocate, and not be an advocate, at the same time. By the way, personally I think this is a contribution.

 

[Webbed Feet]

<..... snip......>What about the additional data if requested by the new internal; transferred FHA Lenders? How long can it go on? <...... snip......>

This is a somewhat new problem as we have clients that are used to pulling crap for conventional loans now pulling the same crap for FHA loans. That being they are attempting to sanitize the appraisals before they submit them. And I thought I did give a pretty good answer to this. I said before that personally I would demand out of them, from FHA in writing, why it is FHA is not accepting the appraisal just exactly the way it was written for my real client, the first client.

The FHA Connection transfer between lenders does not transfer the appraiser / client relationship to the second lender, IMHO. We owe this second entity absolutely nothing, IMO. All of you decide to owe them anything you want. It's your license. If they are asking for new comps with sales dates that occured after the effective date of the appraisal... that is asking for an "update" which is a "new assignment" per USPAP. When did FHA allow a new assignment on that subject in less than 6 months?

If they are asking for additional comps with sales dates prior, or up to, the appraisal effective date, this may be an alteration of the agreed upon SOW with the actual client of the appraiser and also the preprinted SOW on the 03/2005 Fannie forms. Also, there never was any contract with this entity and the appraiser. My opinion, for MYSELF, is I would have no obligation to comply with anything they want at all. What if I already had 6 comps in that report and had done a bang up job on it? Plus they were trying to tell me I had to do more work for free. I'd have a polite answer for them. More than this, it is my understanding of USPAP that I am not allowed to later add additional intended users not identified at the time I accepted and did an assignment. This may cause a big cog in the works for everybody else. .. But I did not write USPAP. I just have to obey it. My first client is my client, FHA / HUD is an intended user along with my first original client. FHA / HUD can allow all the transfers they want, it doesn't make every and all possible transferrees intended users or my clients.

If somebody else has a work around for this... go for it. It's your license. But I recommend you personally call your own state board about this topic.

Webbed.

 

[Gary Schinagel]

http://www.lectlaw.com/def/f026.htm

Ok class. A person with a fudiciary duty to someone else is REQUIRED to act in the other persons best interests. You are NOT allowed to act in manners adverse or contrary to the interests of a client. Try reading the stuff at the link.

Now then, under USPAP, we are NOT ALLOWED to bias ourselves and act in the "best interests" of our clients...We are required to remain unbiased even if the results of our acts (read that opinions) are not in the best interests of our clients! .. To wit:



Ok? Do we know the difference now? A person with fiduciary duties is required to be an advocate for whoever they owe the duties. A real estate appraiser is required to not be an advocate of any party.

Therefore, if you have accepted fiduciary duties involving your clients for a real estate appraisal, I would like to put forth that you are in a lot of trouble as you are violating the Ethics Rule of USPAP.

Webbed.

P.S. So our duty of confidentiality is a USPAP thing... not a fiduciary thing. It can't be fiduciary as we are not allowed to advocate for our client's interests. We can't be an advocate, and not be an advocate, at the same time. By the way, personally I think this is a contribution.

Answer the question if you want to contribute. There is nothing you can say to make me feel that I should not have a duty to protect the confidentiality of the assignment. Nobody said a darn thing about this being a fudiciary issue it Quack
Answer the original Question if you can? And quit wasting peoples time critisizing. I mean get a job/LIFE.