Intended user question

[Dpvalue]

I have received a email from a lender saying that a borrower has provided them with my clients (and the previous lender's)appraisal (Intended Users) the new lender is questioning me about the report as if they are going to use the report. I believe this is a lender whos trying to go around a new report. My question is the lender in violation if they use the report if the borrower provided them with it and do I have to respond. This actually sounds like it should be a new appraisal assignment

 

[shrubberyvaluation]

I have received a email from a lender saying that a borrower has provided them with my clients (and the previous lender's)appraisal (Intended Users) the new lender is questioning me about the report as if they are going to use the report. I believe this is a lender whos trying to go around a new report. My question is the lender in violation if they use the report if the borrower provided them with it and do I have to respond. This actually sounds like it should be a new appraisal assignment

The lender can do what they want and you are in violation if you do respond to anything confidential based on your agreement with your client.

 

[TerryRohrer]

If you were engaged by a lending institution, another lender can use your report. But they have to use it as is, without additions or corrections. Or they can order another. As noted, they are not your client and you are bound to observe confidentiality.

 

[Zoe]

The new lender don't even need to email you about anything unless they engage you on a new assignment. You are still bound by confidentiality with your client in your original appraisal. Don't even admit you did a previous appraisal to the new lender. Say, I don't know what you are talking about.

Say I am very busy at the moment. No time to chat.

Best response may be "please consider me if you need appraisal work performed?"

My first two recommendations on responses were not appropriate if you think you could get a new client.

My first reservation is this NEW lender should know they are not your client and the whole system.

And that makes me wonder if you want them for a client.

 

[Zoe]

You could teach the lender a few things if they engage you. See?

They would want you to treat them the same way if they were your client.

The golden rule.

 

[sputnam]

I have received a email from a lender saying that a borrower has provided them with my clients (and the previous lender's)appraisal (Intended Users) the new lender is questioning me about the report as if they are going to use the report. I believe this is a lender whos trying to go around a new report. My question is the lender in violation if they use the report if the borrower provided them with it and do I have to respond. This actually sounds like it should be a new appraisal assignment

Doesn't matter who the Intended Users are. Your obligation is to the Client. The original Client is the Client for that assignment forever. USPAP prohibits us from chatting with anyone except the Client about the opinions and conclusions relating to that assignment.

You are probably right... they want to avoid the time and money required if they ordered a new appraisal.

The new lender may... or may not... be in violation of some lending rule. Not your problem.

 

[George Hatch]

You have no discretion on the Confidentiality factor. And you certainly have no incentive to go behind your client's back and enable their competitor to snake their deal out from under them.

 

[Terrel L. Shields]

new lender is questioning me about the report

The new lender can accept or decline the report. They cannot force you to disclose anything, nor do they need to. Tell them that they are not your client and you cannot discuss the report with them. And if they claim they have permission from the prior lender it does not matter. Do not discuss anything with them and refer them to the Interagency Guidelines if they are confused.


and

When a new client asks about an appraisal previously prepared for another party, appraisers should politely decline to discuss the details of that appraisal due to confidentiality obligations under USPAP (Uniform Standards of Professional Appraisal Practice), and instead, explain that they need to initiate a new appraisal assignment with the new client to provide a credible valuation based on their specific needs and intended use; they should not "readdress" or transfer the existing appraisal to a new client​

 

[Tom D]

Simple answer. The state and appraisal confidentiality do not allow me to discuss my clients appraisal, and you are unfortunately not the client on that appraisal. I don't make the rules, i just follow them. I always like using the word 'state', what are they then going to say. But having said that, depends on what they are asking, could they become a new client. They have a copy, so it's not confidential anymore. Do a new one at a reduced price.

Actually, the original lender owns the appraisal, not the buyer. However, the lender is required to give a copy to the borrower.

 

[JTip]

Very simple.

They can do whatever they want with your report.

You CANNOT discuss, advise, make changes or anything since they are NOT the intended user.