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Intended User(s)

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GeorgiaBoy

Junior Member
Joined
Jul 23, 2003
Professional Status
Licensed Appraiser
State
Georgia
I'm pretty dumb on this subject so please excuse me, but on an FHA appraisal should we reference Dept. of HUD as an intended user? Or, if its a conventional should FNMA or FHLMC be referenced?

My first instinct is to reference "the client, its successors and/or assigns" as well as the Dept. of HUD (for FHA's), and thats it.

I would love to find a statement that works for both FHA and Conventional appraisals. Someone please hit me with the right way. I know this is an easy one for you guys :D
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Brian:

They ain't no "one size fits all"

In all seriousness the quite specific reccomendations of any of the insurors who communicate concerns to thier insureds...and the direction the ASB seems to be taking, is that one should spend a few minutes - in fact MORE than a few minutes - customizing the intended user and such to very specific and narrow terms to protect yourself and delimit any unintended users...

Dept of HUD is an intended user and should be named as such in any FHA appraisals.

For conventional I think one shoudl NOT include 'or thier assigns' unless additional verbage is inserted to specify that assigns for the originally intended use ONLY should be added.

I am not currently putting such 'or thier assigns' without quite specific delimiters... because 'or thier assigns' could wind up being anyone who the ortiginal intended user decides to grant permission... And as a result takes all control out of your hands... which could have pretty adverse results in some cases.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Liability Administrators said using and/or assigns is bad, bad, bad!
 

GeorgiaBoy

Junior Member
Joined
Jul 23, 2003
Professional Status
Licensed Appraiser
State
Georgia
Thank you guys very much for your input. The only thing that I'm still cloudy on is how you would reference the buyer of a loan that is going to be sold in the secondary market. These buyers should be referenced as an intended user I am sure. That is why I thought that "its successors and/or assigns" should be included. Keep in mind that "assigns" in the mortgage sense applies only to assignees of the of the security interest for the loan.
 

GeorgiaBoy

Junior Member
Joined
Jul 23, 2003
Professional Status
Licensed Appraiser
State
Georgia
Maybe??

"The intended user of this report is the client named herein and the successors and/or assigns of the clients security interests, as specified in the report's function"
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Brian, Brian, Brian.....

I add on all of mine:

The Client is: ************* who is the lender. The Purpose of this Appraisal Report is the Appraiser's Opinion of the Market Value of the subject property. This Appraisal Report is for the sole use of the Client and HUD/FHA for mortgage finance decisions only. The borrower is not an intended user of this Appraisal and Report.


I bolded the part I want you to pay attention to. I will be adding more regarding 'users' right away after reading some recent threads. This is just part of what I put on the USPAP Compliance page of every report I do. The reference to HUD/FHA is removed if it's not for FHA.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Okay, I will quote my comments--any and all constructive suggestions or corrections are welcomed. Following are the comments that I have on my USPAP Compliance Addendum.

FHA appraisal reports:
"The purpose of the appraisal is to offer an opinion of market value for the subject property as defined herein. The intended use of this appraisal is to support the underwriting requirements of a FHA-insured mortgage and the use is to support FHA's decision to provide mortgage insurance on the subject real property. The intended users include the lender/client named above and HUD and is to be used for FHA-insured mortgage lending purposes only. Use of this report by others is not authorized or intended by the appraiser, the appraiser assumes no obligation, liability or accountability to any third party."

Conventional appraisal reports:
"The purpose of the appraisal is to offer an opinion of market value for the subject property as defined herein. The intended use of this appraisal is to assist the client named in the report in evaluating the subject property for a mortgage finance transaction only and is not intended for any other use or purpose. Use of this report by others is not authorized or intended by the appraiser, the appraiser assumes no obligation, liability or accountability to any third party."

Above comments get revised, edited, etc, etc, depending on the appraisal problem and scope of work for the assignment.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
May I use your statement? Gotta love it!
 

GeorgiaBoy

Junior Member
Joined
Jul 23, 2003
Professional Status
Licensed Appraiser
State
Georgia
Excellent guys!! Thank you very much!!
 

Pine Tree

Junior Member
Joined
Aug 19, 2002
Professional Status
Certified Residential Appraiser
State
Maine
I like something I found in a thread here a few weeks ago.. apologies to the poster that I am not taking the time to look up his name.. But he still gets the credit.. He uses..

The intended user is the client named herein and it's funding source.

Rock on! Wendy
 
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