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Re-assigning Appraisals

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BlueDog007

Member
Joined
Jan 25, 2002
Professional Status
Certified Residential Appraiser
State
South Carolina
Ok. I just got out of a continuing ed class, and I am more confused now than before the class. My instructor explained that as per USPAP 1/1/2003, appraisal reports can not be re-assigned. Not even if you have a release letter from the original client on file. The instructor sited AO 10. I just got back from class, and read AO 10. In my opinion, there is nothing that says that an appraisal can not be re-assigned if a release from the original client is provided.

Example from instructor: Bank A orders an appraisal. 3 Months later, Bank B would like it re-addressed into their name. Even if Bank A provides a letter of release, the appraiser CAN NOT re-assign the appraisal to Bank B. Instructor explained that the appraiser has to re-appraise the property, with a new effective date. Please provide your opinions. Much appreciated.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
My CE instructors said each order is a new order. A release is not needed. You just can't disclose financial data provided by the first lender, i.e., terms, etc.

Roger
 

BlueDog007

Member
Joined
Jan 25, 2002
Professional Status
Certified Residential Appraiser
State
South Carolina
My question is. Can you take the old file, create a new file number, change the lender/client.........ONLY if you are provided a release from the original client. Obviously, you would keep this letter in the new file. And, keep the original effective date?!?!!?
 

USPAP Compliant

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
It is a NEW ASSIGNMENT. If it is a NEW ASSIGNMENT, you no longer need a letter of release.

I re-visit the property, re-shoot all photos, use what I can of the OLD ASSIGNMENT, refer to the OLD ASSIGNMENT and issue a NEW REPORT. No client confidential information data is referred to or reused. I am not simply re-typing, changing a name or item hear and there....I am doing a NEW ASSIGNMENT. This may mean there are different comparables used this time because I am researching for a NEW ASSIGNMENT and there may or not be different/better data avialbale NOW as opposed to BEFORE.

Others may do it differently. In fact, I am certain that many others will do it differently.
 

Fred

Elite Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Virgin Islands
Bob,
:beer:

An appraisal is an appraisal.
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
OK, I am with Ipock on this one. If you have the same effective date, you better get a release for CYA. if its the next day, its a new appraisal assignment. Charge the same number of pelts if you wants. that way they have a choice, they can get you to do it quickly or they can get one of our bretheren to do it. Either way appraisers win! We are not chairties, we are not employees, we are free men with free will, We are not slaves.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I think your instructor was wrong. But then what do I know???? Oh, I know what I know, I would get a release from the first lender, change the name and move on. In the event the second lender wants a new appraisal with a new effective date then it is a new assignment. The purpose of the first appraisal is finished...I can use what ever data I want. New inspection, new comps and move on.

This isn't rocket science folks...but some of the people creating the rules are pretty far out in space!
 

Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
Well said Mike! :beer:
 

John SRA

Junior Member
Joined
Jan 19, 2002
It sounds as if you instuctor has read the latest exposure draft from the ASB. The ASB is proposing to replace the current version of AO-10 with three new AO's. One of the new AO's deals directly with the issue of re-assigning a report.

The gist of the matter is as follows. An appraiser must identify the client, the intended use and the intended users at the time of the assignment (see definitions section of USPAP). These are the driving elements behind the scope of work decision. If you must make these identifications at the time of the assignment, then you cannot possibly change them after the assignment is complete and a report is delivered.

The solution is simply to treat the request as a new assignment.

Have a good day

JC
 

Austin

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Virginia
Mike illustrated the problem and John answered it. The biggest problem I have when the phone rings and some one says “I want an appraisal,” especially if it is a lender calling, is trying to find out from them enough information to determine the scope of the appraisal. The source of the problem is that the client doesn't know enough to know what they want and I have to drag it out of them. If the borrower owns a house free and clear valued at an estimated at $100,000 and wants to get an equity loan for $25,000, then I know exactly what the purpose, intended use, and scope of appraisal should be. If I get a call six months later and the same borrower is refinancing with a mortgage company (happens all the time), and they want a copy of my prior appraisal I won’t give it to them. Why? Because I have no idea what the intended use of the appraisal will be. The borrower could be applying for a 95% loan and the borrower could have just lost his/her fortune in the stock market since my last appraisal. In my opinion, to give a second lender a copy of a prior appraisal not knowing the purpose, intended use, or required scope in comparison to the 1st assignment is totally irresponsible and could be fatally misleading. I don't care how many releases you get, that is not the point, the point is purpose, intended use, and scope of appraisal. That in and of itself is sufficient reason to justify another appraisal assuming the interest of the 1st client is not impacted like in a legal settlement or court case.
 
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