Quickie question (as my granddaughter would say)

[Atlanta CG]

Hired by AMC to do appraisal for an unknown lender for refinance. Homeowner wants to go to another lender and use the same appraisal. But the original lender will not respond. I know I cannot release it but if the original lender refuses to respond, does the owner have any option to use the appraisal?

 

[Terrel L. Shields]

No. (quickee answer) You are beholden to the client and Lender B is not your client. Tell the borrower that is between the Lender A and Lender B because you cannot address ANY concerns of Lender B. But you can offer to do a second appraisal (for a reduced price if you wish) to Lender B without disclosing any confidential information.

 

[Atlanta CG]

Now they are telling me the first lender did release the report to the new bank and the latter wants some changes. Do they still have to order a new appraisal?

 

[Tom D]

Yes, new order. But you give them a discount on the new one. Maybe pick up a new client. You explain to them, educate them on our rules.

 

[shrubberyvaluation]

If the lender won't accept it yes.

 

[Atlanta CG]

Do not mean to belabor this but I'm working with very hard to understand people throughout this where English may be a 3rd language. Fannie guidelines state I can do an update so I will be able to make changes (they are very minor). Update meaning 1004D or a new appraisal? Sorry but the language in Fannie is not clear to me.

 

[Terrel L. Shields]

first lender did release the report to the new bank and the latter wants some changes.

Yes. You CANNOT CHANGE THE REPORT. Period. THEY ARE NOT YOUR CLIENT. The report is not your client.

. Fannie guidelines state I can do an update so I will be able to make changes (they are very minor)

AGAIN. LENDER B IS NOT YOUR CLIENT. PERIOD. You can do a separate report without reference to any prior report and address what Lender 2 wants. You must at a minimum notify them that you provided a prior service for the property, and address the concerns without disclosing any confidential info - the prior client, value, etc.

This is nothing about an "update". You do not do an "update" when the client is not the original client. Go read AO 26 and 27. Straight from the "Good Book"....

After an assignment has been completed and the report has been delivered, an appraiser may be asked to​

“readdress” (transfer) the report to another party. Does USPAP allow an appraiser to “readdress” (transfer) a report​

by altering it to indicate a new recipient as the client or additional Intended user when the original report was​

completed for another party?​

ADVICE FROM THE ASB ON THE ISSUE:​

Relevant USPAP & Advisory References​

• The Confidentiality and Conduct sections of the ETHICS RULE​

• Standards Rules such as 1-2(a) and 1-2(b); 7-2(a) and 7-2(b); and 9-2(a) and 9-2(b), which require an appraiser to​

identify the client, intended users, and intended use​

• Standards Rules such as 2-1(a), 8-1(a), 10-1(a), which require an appraiser to clearly and accurately set forth the​

appraisal in a manner that is not misleading​

• SCOPE OF WORK RULE, which requires an appraiser to ascertain whether other laws or regulations apply to​

the assignment in addition to USPAP​

• Advisory Opinion 25, which covers clarification of the client in a federally related transaction​

• Advisory Opinion 27, which addresses appraising the same property for a new client​

• Advisory Opinion 36, Identification and Disclosure of Client, Intended Use, and Intended Users​

Comments​

The answer to the question posed above is No. Once a report has been prepared for a named client(s) and any​

other identified intended users and for an identified intended use, the appraiser cannot “readdress” (transfer) the​

report to another party.​

 

[Elliott]

Ask all that they want, tell them your fee, have them send the check (its a requirement of your company's policy manual), complete work after check clears.

 

[Surf Cat]

Do not mean to belabor this but I'm working with very hard to understand people throughout this where English may be a 3rd language. Fannie guidelines state I can do an update so I will be able to make changes (they are very minor). Update meaning 1004D or a new appraisal? Sorry but the language in Fannie is not clear to me.

My bold above. NO.... you are interpreting Fannie guidelines incorrectly. The original appraisal belongs to the original client. The new lender has no say and nothing to do with the original appraisal.

"If" the new lender wants an appraisal report, it's a new assignment. "If" the new lender orders a new assignment from you, make sure you get their engagement letter. The new lender's engagement letter may have different assignment conditions than the original appraisal. So read it carefully.

I "used" to give the second lender a discount due to the fact that pretty much everything is the same if weeks or months haven't gone by. My experience in doing that, the new lender walks all over you like a rug and doesn't respect you.

Provide a service in a professional manner, receive a professional fee. Depending on how smoothly everything goes, you may pick up a new client along the way.

 

[Terrel L. Shields]

Provide a service in a professional manner, receive a professional fee.

Or, to avoid that "walk all over you" feeling, if not a client I have previously worked for, I would just say no. Let them use someone else.