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One Appraisal, 2 Or More Lenders

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Frank Bertrand

Junior Member
Joined
Aug 21, 2002
Professional Status
Certified General Appraiser
State
Pennsylvania
Did a COD for lender A. two weeks later, owner wants it sent to lender B. I go visit the property again and prepare a new effective date, verify that nothing changed from the original report and am prepared to send it to the second lender. Since there is a new effective date and new inspection, any issues here?

Second scenario: couple's new construction is non-conforming and owner wants to submit appraisal to several lenders. Wants me to prepare (and I want to use the right term here) a clone or duplicate report--is this legal if disclosed in the body of the report? Something like, "This report prepared for the non-exclusive use of abc bank..." thanks to all
 

Farm Gal

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

In your first scenario I personally see no conflict: you have a new assignment with no issues.

#2 gives me a bit of a headache...
This is how I personally would handle it. (I can hear the screams already... <_< ) You all do whatever you want!

I would accept an assignment from the homeowner I would identify the purpose as 'to procure financing on an atypical non-conforming property, to be submitted to several lenders, names and addresses currently unknown to the appraiser' I would also boldly limit it's use to the ACQUISITION of financing process ONLY not to be used for an actual loan per Fannie MAe and FIRREA regs as the client is NOT a lender!

I would get IN WRITING original client (owner) permission to reference the original 'viewing and data acquisition visit' in any subsequent assignments that might arise on behalf of that original cleint.

When they settle on a finiancial institution (or the institution proposes to settle for them) I would accept a second assignment from the institution disclosing that you had done a previous assignment for another client. and cutr the homeowner a substantial discount - you know what we used to call a re-type fee :rolleyes: ) on the second assignment!

As near as I can tell this would satisfy both letter and intent of CURRENT USPAP regs. :usa:

jus my opinion.
 

Fred

Elite Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Virgin Islands
Frank writes, "I want to use the right term here) a clone or duplicate report"
Call me simple minded, but I say the right term is “appraisal.” Probably a complete appraisal, summary report. From what you said, this is a separate appraisal from the first with its own scope of work and itw own report. If this is an FRT, you should get bank B to be “the client” by “engaging” you “directly” (per SMT-10). When finished, send bank B a bill for whatever you think the extra time and paper is worth. If this is not an FRT, uh, let’s not go there.

Lee Ann writes, "I can hear the screams already"
A-A-H-H-H-H :D
And you write, "I would get IN WRITING original client (owner) permission to reference the original 'viewing and data acquisition visit'"
He said he did a second “viewing” for the second appraisal and second report. The first visit is just part of his geographic competence. :D So, if anything, he needs to reference the second visit. Right?
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Woah!!!

Steven Santora! Did you mix the two questions in the original post? I'm crushed! I thought you were perfect! :eek: :D

Really, I always read what you write because I almost always either agree or learn something. I believe the portion of Lee Ann's post you referred to was regarding the second question, a different situation. In keeping with what the owner wants to do with his own initial appraisal, then when the lender is chosen, they order a second report, which would basically be a clone of the original, with a new client and a second inspection date.

Or did I miss something???? :eyecrazy:
 

Fred

Elite Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Virgin Islands
Funny Pam.
I had to read the thread about three times to see what you meant. Yes, I mixed the idea of getting an owner’s release with the two-inspection job. If it would help, I can start a thread all my mistakes. Got enough server storage?

The part I scream, or at least cringe at, is the idea that we would need someone’s written release under any circumstances to rely on physical property characteristics that we personally saw or photographed. (That includes whether the site is inspected once or twice, or if the same property is appraised again by the same appraiser, etc.). Any time that idea of needing a written release gets put forward, it is liable to scramble my circuit board. I would likely continue to challenge that idea again in the future to see if someone can come up with something to support it.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
:rofl: eagle eye Pam

Steven:

(you were warned.. :D ..here I wuz trying to preserve your perfect posting record B) to no avail... )
I actually agree with you about the idiocy of thinking that information that we have acquired through the course of an inspection is 'owned' by anyone besides ourselves.... however I would pont out:

The Law is an ***

about such matters, and until I can see in writing from some souce I can confidently quote to the judge that I did NOT :angry: violate any whisker of the law... I am going to cover my a$$ets by making sure I am fully USpoop compliant and legally 'safe' as houses.... If getting someone to sign a BS release insures ME that I have a reason rationale and "Here it is, your Honor" defense.... I figure I am a step ahead of any potential issues.

Being right does not preclude being sued.
Being sued with more paper and understaning of the rules than the other guy is often beneficial.

OH well.

the revised AO-10 may resolve the problem....

Ever notice the make up of the word RE - SOLVE?

"fixing again"?
 

Fred

Elite Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Virgin Islands
Posted by Lee Ann
"I actually agree with you about the idiocy of thinking that information that we have acquired through the course of an inspection is 'owned' by anyone besides ourselves"

FWIW, you are a very hard person to agree with.

IMO, your instinct for legal self-protection is quite admirable. And if you can get the owner to sign these relseases, you might consider adding language not only permitting to communicate facts about the property, but having the owner certify that you did not steal anything, molest any living critters, induce or coerce the owner or person on the property into any criminal acts or conspiracies, etc. That way if you are ever falsely accused of violating any REAL laws you can be just as protected as you are from accusations of violating the imaginary ones. :lol:
 

Farm Gal

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

Steven,
I just modified my COD Owner PMI release form which covers Gramm-Leach-Bliley, and contains a scary portion of what you mentioned above AND releases me from ANY responsibility for a boatload of things like further notification and accidental damage and gives me the right to apply maximum "bounced check" fees if I am forced to collect rthough any means besides one deposit at the bank! and lets me talk to the lender if they have any questions... cause the HO is the client!

Do you have a spy cam on me :eek:
( I really don't spend all day dreaming this stuff up!)

Just because I am paranoid doesn't mean they aren't out to get me :ph34r:
 
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