Getting Orders On Same Property By Two Different Lenders

[Gobears81]

You have not indicated that both appraisals are for the same purpose...lending. If so, is the borrower aware that the appraisal he contracts with you cannot be accepted by a federally chartered bank?

Both were ordered by a bank. I have not yet contacted (or heard from) the borrower. I've had many a conversations with borrowers over the issue of them ordering directly, as quite a few of us have, I'm sure.

 

[J Grant]

Imo, always best to be upfront about awkward situations...one bank ordered it first and you accepted, correct? I'd tell second bank you accepted this order from first bank, do they want to proceed with assignment. As a courtesy, if you accept the second bank's order, I'd let first bank know. If first bank is a good client I'd stick with them and turn down the second bank's order. you might "lose" one of the orders short term but retain client good will avoid any possible ramifications or future /long term client mistrust

 

[Terrel L. Shields]

I would notify the second bank I have recently been assigned an appraisal for the same property, do they want to proceed?

 

[Gobears81]

Keep us updated on how this unfolds.

I let the second client know first and the intermediary said that I should call the broker. The broker was pretty hot about how slow the process with the first bank was moving and said that the buyer is definitely going with the other bank. I also let the first bank know that I had subsequently received an order and after some investigation, they said to cancel it.
I get a little nervous about the best way to handle these types of things, but everybody is happy (except maybe the first bank for losing the loan) and it was probably best that all parties knew what was happening.