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Lender Request

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MikeyW

Freshman Member
Joined
Feb 1, 2012
Professional Status
Certified Residential Appraiser
State
California
If a lender requests a signed confirmation of the effective date, address of property, and appraised value in a report I provided them 3 months ago, what are my obligations and/or restrictions?
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
If a lender requests a signed confirmation of the effective date, address of property, and appraised value in a report I provided them 3 months ago, what are my obligations and/or restrictions?

Was this the original lender that ordered the appraisal from you? Or is the a different lender who is now in possession of your appraisal?
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
If a lender requests a signed confirmation of the effective date, address of property, and appraised value in a report I provided them 3 months ago, what are my obligations and/or restrictions?

I surmise that "a lender" is not the client. Your "obligations and/or restrictions" you ask? You are not to disclose assignment results to other than your client (or, directed to by your client).
 

Riick

Elite Member
Joined
Aug 14, 2007
Professional Status
Certified Residential Appraiser
State
Delaware
>>> ...in a report I provided them 3 months ago...

Sounds like this *is* the same Lender in both cases.
No reason for you not to respond, but, I would ask them why they want written confirmation.
After all, they knew who to contact, so they didn't lose the report.... or did they.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
Interestingly enough, the USPAP only comments on the term "Recertification" in the context of it being related to confirming that some condition in the original appraisal has been met (like in a 1004D: See AO-3 and FAQs 204 & 205).

What the USPAP is clear on (to me) is that the terms are less important than what the action the appraiser is asked to do and does (George Hatch makes this good point time and time again!).

Sometimes in court cases, an appraiser is asked to sign an affidavit affirming that (a) she is an appraiser; (b) she completed the referenced appraisal; (c) that the date of that appraisal is X and the value is Y, and sometimes: (d) a short summary of her activity (how many appraisals has she completed in the subject's county within the last X years...). There are no USPAP Standard Rule(s) for this (that I've found or heard of) other than not to mislead. When I say there are no "Standard Rules", that doesn't mean that USPAP isn't applicable (as outlined in AO-3 and referenced in my example below).

Since this was your original client, there are no issues of confidentiality. Confirming that you did do the appraisal does not constitute a new appraisal (IMO). If it were me and I was inclined to address my client's request, I might write up something like this:

My client, XYZ, has asked me to certify that I have completed an appraisal for it (the named client in the report) on a property located at XXXXX, with an effective date of XX/XX/XXXX, and with an opinion of market value of $zzz,zzz. The client has not requested an update (new appraisal) of the property nor has it requested I provide a recertification of value, which would mean some condition of the appraisal has been fulfilled. The client only asks that I certify that I completed the appraisal.
I've reviewed my USPAP obligations/requirements and have concluded: (a) this request is not for an appraisal and (b) there are no specific standards the USPAP requires me to follow. I consider this to fall under the Appraisal Practice category as discussed in Advisory Opinion 21 (AO-21). While I'm not performing an appraisal or appraisal review, I am certifying that I did complete the appraisal on the date and with the value previously for the client, and therefore I am being asked as an appraiser for that certification. This request and my response is in the context of "performing a service as an appraiser". As such, the Ethics, Competency, and Jurisdictional Exception Rules apply, and I have followed them.

I certify that I did complete the appraisal on X property with an effective date of Y and a report date of Z, and with an opinion of market value of $zzz,zzz. The appraisal has a flie number of #XXXXXXX. I have attached a true copy of the report which I completed and submitted to my client. This certification only applies to the copy of the attached report and is not intended to be used separately from the copy of the attached report.

Signed,
Me
Lic#
Certification and Signature Date: DD/MM/YYY

The above would cover the question of USPAP compliance, how you viewed the request, and how you complied with it consistent with the USPAP. It also limits the certification to the attached copy; this way, it isn't a blanket certification but a specific certification to the document you attached. If there has been any monkey business to the original report, your true copy would expose it.

However, before I sent anything to the client, I'd ask them why the require such a certification? It could be a mundane reason. It could be that they suspect the report they are looking at is not the report you delivered. It could be that they are going to use the report as part of a foreclosure action (which would be covered under the original intended use if the the appraisal is part of the loan package for which they are foreclosing.. also I believe it would fall under General Certification #21, assuming this is a typical Fannie/Freddie appraisal reported on its pre-printed form). In other words, it could be for many reasons that are legitimate. On the other hand, if they say they have an issue with the report and are going to take some action because of it, then I'd obviously dig deeper and determine if I want to provide them with anything.

Your question was
what are my obligations and/or restrictions?
The above is my answer on how to respond (if you so choose) consistent with what I would consider my obligations are.
My advice is to find out why they are asking for this and then determine if you want to respond or not (a business decision).
You may want to charge for it; I wouldn't argue against that (although the client might)... that's a business decision as well.

Lastly, you can always call our regulator, BREA, and ask them what they suggest. If you do, please post it here; if they indicate something dissimilar to what I've advised, I'd like to know.

Good luck!
 

MikeyW

Freshman Member
Joined
Feb 1, 2012
Professional Status
Certified Residential Appraiser
State
California
Thanks all for the advice. Yes, original client request as a "routine audit of various mortgage loans" I'll check with BREA
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Thanks all for the advice. Yes, original client request as a "routine audit of various mortgage loans" I'll check with BREA

Once I understood that the request was coming from the client, I guessed that it had to be for quality control-type matter.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Thanks all for the advice. Yes, original client request as a "routine audit of various mortgage loans" I'll check with BREA
Audits are made as a way to verify there is no fraud. This sounds like part of a certified audit. Sometimes the letter comes directly from the CPA or firm doing the audit. Your bank apparently recognized the only one you can answer to is them. If not the client I just have to respond that I cannot disclose confidential information. Confirming you did the report on a certain date for that bank is not confidential, only the value is confidential. Facts are not confidential unless the client explicitly tells you to hold that in confidence.
 

DTB

Elite Member
Joined
Jun 11, 2004
Professional Status
Certified Residential Appraiser
State
Illinois
Please do not be the only one in this entire process that is not getting paid.
 
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