Quality Control audit

[Otis Key]

However, the companies (our clients) SHOULD send out a letter on their letterhead indicating that this was coming and asking us to participate. This would alleviate the client confidentiality quandry!!

Sometimes the investor may not want the MB to know that they are under investigation. That was the point of my email to John B. @ TAF and he agreed with what I said. I never know where these things are going - do you?

 

[Steve Owen]

I'd do it this way...

I'd contact my client to discuss but that's just me.

How long can it take to pick up the phone and ask the client? I think it's the original client's call. Likely they'll have no problem with it because next time it might be them trying to verify.

Concerning:

Is the fact that you prepared the submitted document confidential?
Is the fact that the signature and date are correct confidential?
Is the fact that the report is a true copy confidential?

#1. Probably not, but might be depending on the engagement terms.

#2. Same answer as #1.

#3. Yeah, you are getting into a grey area there. When you verify that it is a true copy, you have provided someone who is not your client with confidential information, just IMHO.

 

[Mike Kennedy]

I feel that answering the questions to this third party may violate Appraiser/Client confidentiality. Do you feel the same? /QUOTE]

As the Client owns the Appraisal, suggest forwarding the request to your client and request instructions IN writing.

 

[Otis Key]

My email to John Brennan and post was in reference to:

Confidentiality (ETHICS RULE)
An appraiser must protect the confidential nature of the appraiser-client relationship.

My point, and he conquered, was that this company, unknown to us as an unintended user, was not our client. Now, if you want to verify with your client, then I don't see a problem. But I'm going to continue the way that was posted a while back.

I have also noticed that GreenPoint has started sending out, almost a year ago, a much different version which I see is far better. It says that if you didn't do the report to please contact them.

 

[Josh Shapiro]

I too have recieved these requests. Personally ...... round file and wait for the follow up. Haven't received a follow up as of yet.....

 

[Pamela Crowley (Florida)]

I think it's past time to add something like this to all of our appraisals:

Additional Intended Users: The Appraiser with cooperate with the Quality Control Department and/orQuality Control audit Audit company for Lender(s) of the mortgage loan this appraisal report was prepared for to verify that the report they have in thier possession is a true copy.


Just off the top of my head this morning, so you superior wordsmiths should work on this for us. This is too important for us to just let it go.

 

[Don Clark]

Received, refused to cooperate

I received a similar request. But....this company wanted a copy of the listing and sales data, print outs from the MLS, etc. It was the AMC that had ordered the appraisal on behalf of the lender. I refused. The client and or their representatives have no right of access to my work file. The only time that is different is when you do a restricted use appraisal report where you specifically have to give the client access to the work file so they can understand the report. Well, I rarely do a restricted use appraisal report. Also, it is a violation of the rules of the MLS I belong to for any member of the MLS to give out copies of the listing and sales print outs. Agents can give out what is called a "Public Handout" where informastion such as the property address, owners name, etc are removed. Otherwise they and I cannot give out such information. This company wanted not only MLS data but data I had obtained from the public record. I suggested that they hire and pay an appraiser to do a review as I would not provide such data and there was no requirement for me to do so. I also said please don't send me any more appraisal request. This "audit" was likely because I had a strong verbal disagreement with their "Senior Review Appraiser" whose lack of experience and knowledge were apparent, and whose pressure I was not inclined to bow to. The "audit" was on the same property we had a heated conversation about. He though that he knew better than I did, he being in New York State, Me being in Virginia and doing an appraisal a couple of miles from my office.

You do not have to respond to a request from anyone but the client and even then you must do so in a lawful manner. A client cannot require that you produce documents from your work file. Only a professional review committee of a professional organization you belong to, a state regulatory agency, and a court of law can require that.

Be careful what you provide to anyone.

 

[Pamela Crowley (Florida)]

Good points Don.
OK, I'm adding and editing.

Additional Intended Users: The Appraiser with cooperate with the Quality Control Department and/orQuality Control Audit company for Lender(s) of the mortgage loan this appraisal report was prepared for to verify that the report they have in thier possession is a true copy. Any additional information wanted by a Quality Control Department and/orQuality Control Audit company will be considered added service and a fee will be charged on a pro-rated hourly basis.


Maybe, it can be made much easier than that. How about:

"A true copy of this report will be sent to a verified Quality Control Audit Company if requested."

 

[Otis Key]

Pam - I don't see where adding any more statements, disclaimers, etc. to our addenda (YES - I said it) is going to help. In fact, I honestly believe it would just be another statement that they are not going to read. Hell, they don't read the report now. I also believe that it's covered under the section I copied above. Until such time as TAF and the group come out with something definitive, I feel like we're stuck with "I know nothing; I speak nothing; I see nothing" routine.

 

[xm39hnu]

Pam,
Sorry to rain on your parade, but simply stating in the report that "I'm going to violate confidentiality to the following extent:" doesn't let you off the hook. If there IS a confidentiality issue, the statement you propose will not vacate your obligation.

Sometimes the very fact that you appraised a particular property should be considered confidential. For example, litigation over a value dispute: Should you announce to the world that you appraised the subject, and then you don't appear on your client attorney's witness list, you can bet the other side will hit you with a subpoena duces tecum. The conclusion to be reached is that your value failed to support your client's position. So naturally, the other guy wants it. So you testify; you're paid your expert witness fee, and your client loses. Any guesses who he'll sue next?

For mortgage work, this may not be a problem. As with many appraisal questions, the right answer is "It depends!"