Quickie question (as my granddaughter would say)

[DWiley]

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?

How can the lender be unknown? Who was identified as the "client"?

 

[Surf Cat]

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.

Well..... you could do that. But the appraisal is 90% complete. So, it's an easy gig. I'm too old for the deep discount though.

If I get the second gig, I actually go back out and view the subject property from the street and take new photos. However, unless I'm using a new comp, I'll reuse the comp photos and notate that in the report, along with the statement of providing past services.

 

[JTip]

Homeowner wants to go to another lender and use the same appraisal.

NO. IMPOSSIBLE. NO.

NEW APPRAISAL NEW FEE NEW LENDER

NEW NEW NEW

START OVER

 

[JTip]

Sorry, I thought you said that English was YOUR third language.

NO. IMPOSSIBLE. NO.

NEW APPRAISAL NEW FEE NEW LENDER

NEW NEW NEW

START OVER

 

[Atlanta CG]

Thanks all, I notified the new lender that a new appraisal would have to be ordered but it was unfair to the borrower to pay again, even if discounted, for so few and insignificant changes. Have not heard back so I assume they will accept the transfer as-is. Appreciate all the responses.

 

[Surf Cat]

Thanks all, I notified the new lender that a new appraisal would have to be ordered but it was unfair to the borrower to pay again, even if discounted, for so few and insignificant changes. Have not heard back so I assume they will accept the transfer as-is. Appreciate all the responses.

My bold for emphasis.

I used to think like that. But look at it this way, you didn't tell the borrower to switch lenders. For whatever reason, the borrower has switched gears and gone with a different lender, which requires an appraisal indicating them as the client.

Maybe the new client states all they need is for the name to be switched indicating them as the lender. They state that the analysis, photos and effective date of the initial inspection, they're fine with.

But then, the stips start coming.... the lender requires an additional listing, the lender requires photos of both sides of the subject, the lender requires a living room photo with no cat on the couch.....now your nice guy $100 to switch the client name goes up in smoke. You're driving out to the subject again for additional photos, to the neighborhood for additional comps, making yet another statement in the addendum that the report has been changed to include zzz at the request of the client and that the effective date remains the same and the report date has now changed to zzz.

You could do what Terrel suggests and pass on the new assignment. Or, you could provide your services....just don't sell yourself short. It's not your fault the borrower didn't get a good faith estimate and didn't understand what they were signing for from the initial lender. Just my 2 cents....

 

[John Hassler]

Thanks all, I notified the new lender that a new appraisal would have to be ordered but it was unfair to the borrower to pay again, even if discounted, for so few and insignificant changes. Have not heard back so I assume they will accept the transfer as-is. Appreciate all the responses.

If it's a "new" appraisal and the SOW requires a physical inspection then you must go back out to the subject property. Shooting new photographs would be highly advisable.

 

[Tom D]

Since we all do perfect appraisals here and every appraisal is now acceptable to different lenders, why would the new lender call.
Now you become an attorney, and charge for every minute to give them a new report, but maybe not be so greedy. Never offer your service for free, the new lender can always give you a headache if they are anal, or have a low tolerance level. The problem becomes if you have made a real stupid mistake that could become an existential threat to you. Then you do a new one for $100 or free.

 

[Tim Hicks (Texas)]

Tell the lender to read Certifications 20-24 on the appraisal report. For that matter, read them for your own benefit also.

 

[Terrel L. Shields]

If it's a "new" appraisal and the SOW requires a physical inspection then you must go back out to the subject property. Shooting new photographs would be highly advisable.

Under the new changes in USPAP, I think you would be and are, correct. I think it is a stupid change in USPAP but it is what it is. I really hadn't thought about that aspect of it.

As a website noted, "In simple terms, one unique client assignment = one distinct inspection and analysis."

https://gulfstreamres.com/blog/USPA...ly-inspect-properties-for-each-new-assignment