davetheappraizer
Sophomore Member
- Joined
- Apr 13, 2007
- Professional Status
- Certified Residential Appraiser
- State
- Michigan
Back in December I did an inspection for a purchase of a vacant house (in good shape) and the buyers were getting an FHA loan through Lender A.
FHA requires the utilities to be functional and the attic inspected. When I was first there, the water was off (electric and gas were on,) and I wasn't able to access the attic as the panel door was sealed shut. I made the final opinion of value "Subject To" having the water turned on and the attic inspected. About 2 weeks later, I got a Final Inspection request (to use a Completion Inspection Report) from the same lender. I went back to the property and while the water was on and working, including the hot water heater, the attic was still sealed shut. I noted all of this in the CIR and sent it in.
The next day, I got an email from a different lender (Lender B.) They said that they now had the loan and wanted me to do another final inspection (using CIR again.) They included a note from Lender A stating that they authorized the Case Number be released, and that Lender B would be responsible for any further Final Inspections.
Lender B then asked me to change the name on the original report to their name, and to do a new final inspection. I told them that (a) it is against USPAP to "readdress" the report and pointed to AO-26; (b) that I have agreements with the third party company that sends me work for Lender A, as well as the third party company that sends me work for Lender B that I will NOT perform work for either company unless sent to me by their respective third party AMCs; (c) that FHA requires the attic to be inspected and it never has been, so the "Subject To"' stipulation has never been fulfilled, and (d) that I was 99.9% certain that I couldn't do a final inspection for a different client who was neither the original client nor an identified intended user.
I suggested that Lender B should either have the Lender A request a new final inspection, and if they then wanted to give my results to Lender B, that was their prerogative; OR that they should order a new appraisal in their name through their usual method (which meant that I might not get it, which is fine) if they wanted their name on the report forms.
I didn't hear back from them, so I assumed that Lender B just ordered a new appraisal report. This morning, I got an email from a different person at Lender B who claimed that they "didn't have all the pages" to my report and requested that I send them a copy.
I told them (a) my original was in PDF, so if Lender A released the loan to them, why didn't they have the PDF and (b) that they weren't the client nor an intended user to the original appraisal report and therefore I couldn't send them a copy. I also told them that it's been 70 days since the original inspection, and the attic requirement was never fulfilled and that they really ought to order a new appraisal report so it's in their name, all FHA requirements are met, and it's current.
I've never had a final inspection request from a different client than the one who ordered the original inspection. What I want to know is, (1) did I handle this correctly? and (2) Was I right to say no, or can a final inspection be performed for someone other than the original client?
Thanks in advance
FHA requires the utilities to be functional and the attic inspected. When I was first there, the water was off (electric and gas were on,) and I wasn't able to access the attic as the panel door was sealed shut. I made the final opinion of value "Subject To" having the water turned on and the attic inspected. About 2 weeks later, I got a Final Inspection request (to use a Completion Inspection Report) from the same lender. I went back to the property and while the water was on and working, including the hot water heater, the attic was still sealed shut. I noted all of this in the CIR and sent it in.
The next day, I got an email from a different lender (Lender B.) They said that they now had the loan and wanted me to do another final inspection (using CIR again.) They included a note from Lender A stating that they authorized the Case Number be released, and that Lender B would be responsible for any further Final Inspections.
Lender B then asked me to change the name on the original report to their name, and to do a new final inspection. I told them that (a) it is against USPAP to "readdress" the report and pointed to AO-26; (b) that I have agreements with the third party company that sends me work for Lender A, as well as the third party company that sends me work for Lender B that I will NOT perform work for either company unless sent to me by their respective third party AMCs; (c) that FHA requires the attic to be inspected and it never has been, so the "Subject To"' stipulation has never been fulfilled, and (d) that I was 99.9% certain that I couldn't do a final inspection for a different client who was neither the original client nor an identified intended user.
I suggested that Lender B should either have the Lender A request a new final inspection, and if they then wanted to give my results to Lender B, that was their prerogative; OR that they should order a new appraisal in their name through their usual method (which meant that I might not get it, which is fine) if they wanted their name on the report forms.
I didn't hear back from them, so I assumed that Lender B just ordered a new appraisal report. This morning, I got an email from a different person at Lender B who claimed that they "didn't have all the pages" to my report and requested that I send them a copy.
I told them (a) my original was in PDF, so if Lender A released the loan to them, why didn't they have the PDF and (b) that they weren't the client nor an intended user to the original appraisal report and therefore I couldn't send them a copy. I also told them that it's been 70 days since the original inspection, and the attic requirement was never fulfilled and that they really ought to order a new appraisal report so it's in their name, all FHA requirements are met, and it's current.
I've never had a final inspection request from a different client than the one who ordered the original inspection. What I want to know is, (1) did I handle this correctly? and (2) Was I right to say no, or can a final inspection be performed for someone other than the original client?
Thanks in advance
Last edited:
