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MB's funder wants their name added as intended user

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XI, 207: Intended User (11/01/05)
The appraiser’s certification # 23 is an acknowledgment by the appraiser that certain parties to a mortgage finance transaction that are not the lender/client and/or intended user often rely on the appraisal report. This certification clarifies that such other parties include the borrower, another lender at the request of the borrower, the mortgagee or its successors and assigns, mortgage insurers, government-sponsored enterprises, and other secondary market participants.

The intended user is the party for whom the appraiser is writing the report, which is the lender/client for a residential mortgage finance transaction. Our appraisal report forms clearly identify the intended user as defined by the Uniform Standards of Professional Appraisal Practice as the lender/client.

The acknowledgment of other parties that often rely on the appraisal report is not meant to expand the list of intended users. Instead, it is meant to clarify that others, although not intended users, often rely on the appraisal report as part of a mortgage finance transaction. The appraiser’s certification # 23 clarifies that the appraiser is accountable for the quality of his or her work to those who often rely on it as part of a mortgage finance transaction.

The appraiser’s accountability for the quality of his or her appraisal should not be limited to the lender/client and/or intended user identified in the appraisal report.

Appraisers traditionally have not identified the other parties to a mortgage finance transaction that often rely on the accuracy of the appraisal report as intended users based on the current definition of an intended user in the Uniform Standards of Professional Appraisal Practice.

However, if the appraiser believes that any of these parties should be identified as additional intended users based on information provided by the lender/client or from other sources, he or she should identify them as such in the appraisal report. Fannie Mae will accept such appraisals.

We recognize, however, that there may be confusion in the appraisal community about the distinction between parties who “use” and parties who “rely” on appraisal reports.

In view of this, we will accept the following additional notice or statement when the appraiser believes the lender/client is the only intended user:

“The intended user of this appraisal report is the lender/client. The intended use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction, subject to the stated scope of work, purpose of the appraisal, reporting requirements of this appraisal report form, and definition of market value. No additional intended users are identified by the appraiser.”

The use of this additional notice or statement may help to clarify the identification of the intended user as addressed in the Uniform Standards of Professional Appraisal Practice and on our appraisal report forms. Fannie Mae will not accept appraisals with additional notices or statements that may conflict with certification # 23. In this certification the appraiser acknowledges the reality of a mortgage finance transaction that reliance by these other parties is customary and reasonable.
 
http://commerce.appraisalfoundation.org/html/USPAP2008/FAQ/faq_76_.htm

USPAP defines “intended user” as the client and any other party as identified, by name or type, as users of the appraisal, appraisal review, or appraisal consulting report by the appraiser on the basis of communication with the client.

Statement on Appraisal Standards No. 9, Identification of Intended Use and Intended User,

Parties who receive a copy of an appraisal, appraisal review, or appraisal consulting report as a consequence of disclosure requirements applicable to an appraiser’s client do not become intended users of the report unless they were specifically identified by the appraiser at the time of the assignment.
 
http://commerce.appraisalfoundation.org/html/USPAP2008/FAQ/faq_190_.htm




This report is intended for use only by (identify the client and any other intended users). Use of this report by others is not intended by the appraiser.

Question #5:
But how can I supplement the Fannie Mae appraisal report forms? Fannie Mae prohibits supplementation of the certification regarding anything material.

Response:
The ASB cannot comment on Fannie Mae policies. However, USPAP requires that the appraiser supplement an appraisal report form if the form is not adequate. As stated in STANDARD 2 of USPAP:



An appraiser must supplement a report form, when necessary, to ensure that any intended user of the appraisal is not misled and that the report complies with the applicable content requirements set forth in the Standards Rules. (Bold added for emphasis)
 
Webbed-What a masterpiece of a post. That lender/client line has been a pain in the a**for many many appraisers and needs to be addressed. Unfortunately many think that it's quite clear enough as it is currently written and only needs a few bold highlights as if we somehow can't read those parts very well.
 
Mike Kennedy said:
XI, 207: Intended User (11/01/05)
The appraiser’s certification # 23 is an acknowledgment by the appraiser that certain parties to a mortgage finance transaction that are not the lender/client and/or intended user often rely on the appraisal report. This certification clarifies that such other parties include the borrower, another lender at the request of the borrower, the mortgagee or its successors and assigns, mortgage insurers, government-sponsored enterprises, and other secondary market participants.

The intended user is the party for whom the appraiser is writing the report, which is the lender/client for a residential mortgage finance transaction. Our appraisal report forms clearly identify the intended user as defined by the Uniform Standards of Professional Appraisal Practice as the lender/client.

The acknowledgment of other parties that often rely on the appraisal report is not meant to expand the list of intended users. Instead, it is meant to clarify that others, although not intended users, often rely on the appraisal report as part of a mortgage finance transaction. The appraiser’s certification # 23 clarifies that the appraiser is accountable for the quality of his or her work to those who often rely on it as part of a mortgage finance transaction.

The appraiser’s accountability for the quality of his or her appraisal should not be limited to the lender/client and/or intended user identified in the appraisal report.

Appraisers traditionally have not identified the other parties to a mortgage finance transaction that often rely on the accuracy of the appraisal report as intended users based on the current definition of an intended user in the Uniform Standards of Professional Appraisal Practice.

However, if the appraiser believes that any of these parties should be identified as additional intended users based on information provided by the lender/client or from other sources, he or she should identify them as such in the appraisal report. Fannie Mae will accept such appraisals.

We recognize, however, that there may be confusion in the appraisal community about the distinction between parties who “use” and parties who “rely” on appraisal reports.

In view of this, we will accept the following additional notice or statement when the appraiser believes the lender/client is the only intended user:

“The intended user of this appraisal report is the lender/client. The intended use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction, subject to the stated scope of work, purpose of the appraisal, reporting requirements of this appraisal report form, and definition of market value. No additional intended users are identified by the appraiser.”

The use of this additional notice or statement may help to clarify the identification of the intended user as addressed in the Uniform Standards of Professional Appraisal Practice and on our appraisal report forms. Fannie Mae will not accept appraisals with additional notices or statements that may conflict with certification # 23. In this certification the appraiser acknowledges the reality of a mortgage finance transaction that reliance by these other parties is customary and reasonable.
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(Beat me to the reference) seems to me that your agribusiness people RELY on the report, and are not USERS of the report, and therefore do not need to be placed in as additional intended users. How on Earth do you RELY on something without USING it? This is clear as mud.

Kiss your client goodbye. All Mortgage brokers have the same mother. All it takes to ruin a good, longstanding MB relationship is to say no once.
 
Lawrence R. said:
(Beat me to the reference) seems to me that your agribusiness people RELY on the report, and are not USERS of the report, and therefore do not need to be placed in as additional intended users. How on Earth do you RELY on something without USING it? This is clear as mud.

Kiss your client goodbye. All Mortgage brokers have the same mother. All it takes to ruin a good, longstanding MB relationship is to say no once.
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Per the USPAP, "user" does NOT equal "Intended User".

USPAP (current), Stmt. 9, page U-92, lines 2836-2838:
"An appraiser's obligation to intended users other than the client is limited to addressing their requirements as identified by the appraiser AT THE TIME THE APPRAISER ACCEPTS THE ASSIGNMENT" (my CAPS, emphasis added).

Thus, I can't later (subsequent to the development and communication of the appraisal) add an "intended user" because (among other reasons), I could not be aware of their peculiar requirements as I was developing the appraisal. Using the same reasoning, I do not include the term "and assigns" among my specifically identified "intended users" because there is no way I could POSSIBLY address the needs of an entity or party whose needs I am unaware of from the get-go.

Does this help?
 
Mr. Lansford,

I think you added a very good statment and clarity to the issue.

Webbed.
 
Mike Kennedy said:
XI, 207: Intended User (11/01/05)

.................snip...........

The intended user is the party for whom the appraiser is writing the report, which is the lender/client for a residential mortgage finance transaction. Our appraisal report forms clearly identify the intended user as defined by the Uniform Standards of Professional Appraisal Practice as the lender/client.
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Yes, about as clear a mud now given their following statements.

Appraisers traditionally have not identified the other parties to a mortgage finance transaction that often rely on the accuracy of the appraisal report as intended users based on the current definition of an intended user in the Uniform Standards of Professional Appraisal Practice.

However, if the appraiser believes that any of these parties should be identified as additional intended users based on information provided by the lender/client or from other sources, he or she should identify them as such in the appraisal report. Fannie Mae will accept such appraisals.
Click to expand...

And accept them in violation of their own prohibition against modification of the intended user statement preprinted on the form. Regardless of the fact appraisal boards such as here in Oregon have been very clear about appraisers not producing misleading appraisal reports due to the reports saying one thing "clearly" in their preprinted language, and then something else entirely different somewhere else in the report.

We recognize, however, that there may be confusion in the appraisal community about the distinction between parties who “use” and parties who “rely” on appraisal reports.
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No s.h.i.t.! Ya think?

In view of this, we will accept the following additional notice or statement when the appraiser believes the lender/client is the only intended user:

“The intended user of this appraisal report is the lender/client. The intended use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction, subject to the stated scope of work, purpose of the appraisal, reporting requirements of this appraisal report form, and definition of market value. No additional intended users are identified by the appraiser.”
Click to expand...

Ok Fannie! So you are clearly saying that we CANNOT use the above statement when we have any client that is a MORTGAGE BROKER and NOT a mortgage banker that is going to hold the loan then? Right? Am I right, or am I right? So dear sweet Fannie, you just said that when I know a mortgage broker is going to shop a loan, the MBer cannot and will not identify any other intended users, that I CANNOT use that above statement! Specifically because all real estate appraisers therefore know damn well another intended user is still hiding in the background and has not been identified to the appraiser at the time of the assignment. The best we can do is try to identify the additional intended user by type, and you just said if we do that then we cannot use that statement. Again, because clearly there is no way possible that the MBer can be the only intended user due to the intended use. The MBer has to sell that loan to a wholesale lender.

Hey! Hold on just one bloody moment! .. My appraisal board, and most all of them in the country as far as I know, took you to task over this Fannie, several years ago after the 03/2005 forms came out, because YOUR preprinted intended user statement and other certifications combined into an inherent USPAP violation for all appraisers. MY appraisal board informed me that I MUST use that statement above in blue, a statement that you agreed to, in order to be in compliance with USPAP. Expressly due to the fact that YOU placed preprinted language on YOUR forms prohibiting MODIFICATION of the intended user statement! Your statement I colored in brownish red above Fannie contradicts the agreement I thought you made regarding the additional intended user statement that I was told by my board I am REQUIRED to use to be in USPAP compliance. At least this is my current understanding, you never agreed to anything? So Fannie, I take it your intent here was to force all real estate appraisers to stop doing business with mortgage brokers, correct? As it is not possible for them to be the "only" intended user, and the last word I have is I MUST use that intended user statement that you agreed to be used. .. I am not allowed to alter one single word of it, if I do all sorts of wholesale lending staff will be all over my *** about it! And due to you Fannie as this is what everybody has been told.

The use of this additional notice or statement may help to clarify the identification of the intended user as addressed in the Uniform Standards of Professional Appraisal Practice and on our appraisal report forms. Fannie Mae will not accept appraisals with additional notices or statements that may conflict with certification # 23. In this certification the appraiser acknowledges the reality of a mortgage finance transaction that reliance by these other parties is customary and reasonable.
Click to expand...

Sorry Fannie. Once again, in your famous typical fashion, you have failed in your mission regarding clarifying hardly anything regarding your own forms. Obviously, just correcting the offending language on the forms themselves is entirely too much to ask for. The fix is to confuse the situation even more than it started out to be by not bothering to properly consider the current business environment all real estate appraisers in the country must attempt to function under.

Webbed.

P.S. Thank God USPAP trumps Fannie.
 
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