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Re-assignment Of Appraisal

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Dave Smith

Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Wisconsin
Help!!!

Can anyone send me in the right direction regarding information about assigning an appraisal to a second lender? I know its been discussed here before but my search for the topic has come up empty.

I have the first lender's written permission to assign the report. The second lender is insisting that I change the client name on the original report, providing them with an "original" copy with their name on it. They insist that a re-assignment of the report won't work. I have told him I can re-assign it but I won't change the original report in any way.

How do I support my position on the re-assignment issue?

Thank you.
 
W

walt kirk

Guest
Dave,
I don't understand why you object, just change the client's name to mortgage company #2. Mortgage company #1 has given you permission to do it and it has no effect on your analysis.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Dave:
Under these conditions I would be very comfortable doing a NEW ASSIGNMENT.

What you charge for the new assignment is up to you! (you can be very generous in your fee). I would personally charge a nominal (what we used to call re-type) fee.

Keep in mind that the entire reason the new lender wants THEIR name on the report is for liability purposes :eek: ... establishing a direct client relationship with YOUR pocket. Fannie lets them use the original report! THERE IS NO REASON for the 'renaming' other than connection to your pocket.

You have authorization to use the original INSPECTION in that release...
(This is part of what bugs me in the current mess of AO's and USPAP)

I believe to be fully compliant you would HAVE to (and fortunately have the release for) disclosing the original assignment and client. I think that running a quick check for any 'better comps' is fine, but despite the recent Harrison article about reassigning, I would be fine performing this new assignment as of the effective date of the original inspection... ( I might check it again for clarity typos and etc B)

Jes MY opinion - I am sure others will vary... <_<
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
I agree with Lee Ann. I don't do re-types or re-assignments any more. Lenders just don't understand the confidentiallity and USPAP stuff ...... and don't care. One of the biggest problems I have run into, in the past, is when we did a re-assignment, the lender always called up in a panic 4 hours before closing wanting the effective date changed. Sorry, no can do. :blink: That make them real happy. :eek:nfire:

So my rule now is all are new files with new inspections. The fee depends on how long ago it was. ;)
 

rtubbs

Junior Member
Joined
Jan 15, 2002
I'm with Walt. There is in place a mechanism whereby lender A can assign the appraisal to lender B. However, if lender B insists that the appraisal contain lender B's name, Just reissue it to lender B and disclose, if you believe it to be necessary, that the appraisal was initially prepared for lender A.

No need to complicate our life anymore than we have to.
 

Phil Rice

Member
Joined
Apr 22, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Lee Ann,

You refer to a Harrison article. I would like to read it. I looked and could not find it. Can you point me in the right direction?

Thanks in advance
 

Farm Gal

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

This month's Real Estate Valuation Magazine.

There have also been several articles in the AI online mag, and the NAIFa group has taken a stab or two at this issue... seems that the AO (err is it 10? :redface: ) and exposure draft have left this as a bit of a black hole as to HOW TO... while making it clear that an appraiser 'can' elect to aid the homeowner or borrower in this matter! Notice that there is no REQUIREMENT to do so.

I find it interesting that FHA/HUD made specific provision to address this matter: the appraisal is good for 6 months and 'sticks' with the property regardless if there is a new borower/new lender/ or BOTH!

~~~~~~~~~
Anyway... a little story why I am cautious with 'copy requests' even if they don't involve a reassignment of lender.

I was asked to provide an original copy to lender B, they knew they didn't need a new name, but could use the original.... Someone faxed me a release, and something about the release didn't 'look' right... lack of date, possibly a slight oddity in the angle of the leatterhead to the print... I STILL cannot decide what caused me to verify the release. I DID notice that it came not from the purported original client, but rather from lender "B"'s fax number.

Hhhmmm result of phone call to lender a resulted in speaking to person whose, name was purportedly signed on bottom line... but he doesn't DO that part of transactions and it was not only not his sig but given that he spells his name differently: hence a flat out forgery!

OK so now I have a broker wanting not even a reassignment, but just a copy of the original. I got something in my files with letterhead that says permission to release...

But I have found out that someone somewhere in the deal has forged a document.

I told them that they could all go soak their heads. get a new appraisal from someone else... But not ME :angry: at this point I don't care WHO did the forgery, I don't want to get involved in further investigation. I just want shed of the whole matter.

Did the borrower do the forgery? Did lender B? Did someone at lender A? ummm who is to know? I don't care, I don't want association with ANYONE involved. cause if they lie about one thing how much else in the deal is BS also?!?!?
 

Dave Smith

Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Wisconsin
Thank you all for your input. My confusion has been cleared up. Not that the lender's confusion has been.

Phil:
The article Lee Ann referred to was printed in the April 2003 Real Estate Valuation Magazine, written by Glen Williams of Forsythe Appraisals, Inc., located in Boston, MA. Good article!

Lee Ann:
Thank you for referencing REV Mag. I knew I had read the article somewhere but couldn't remember where.

Thanks again,
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Dave & Phil:

Sorry for adding to the confusion: I tend to call all the stuff in REV "Harrison articles" despite the many excellent contributors to the magazine :redface: . One seems to be located in the reading room of my residence... the other one hubby seems to have secreted in some other porcelain containing location :rolleyes: partner spouses :blink: .

I was not in agreement with several of the conclusions stated in that article, and did not have it at hand to quote directly, nor had I the desire (at that time) to further muddy the waters with discussion as to why I am disagreement!!

--------------

rtubbs: It is precisely the action that you suggest (as I understand it) that puts you the appraiser in danger of being declared in violation of USPAP!...
IF one did not have that release...
The appraiser {gasp} disclosed a confidentiality without permission from the client!!! :rolleyes: By including the name of the lender for whom you did the original appraisal, you are disclosing in the second report confidential information which was not otherwise available to you in the normal course of business... It was stated in front of me by a reliable source that that may in fact BE the only bit of confidential information (other than loan amounts or other such happy REAL confidential things) that an appraiser COULD wind up disclosing in the course of delivering a 'second' report! Yet several of the articles I have seen lately indicate that by NOT naming the original lender one is in violation <_< Personally I think that stating one originally performed the appraisal on behalf of another lender should suffice.

Purportedly the original inspection physical DATA, is not confidential.... <_< but until I see this in writing from a reputable source, I do not have great confidence that the physical inspection performed on behalf of the original lender is (or is not) confidential (otherwise available to me in the normal course of business): hence my insistence at this time, on performing a second (however cursory) inspection.

what a mess...
------------------

This whole business of assignment and reassignment :eyecrazy: should hopefully be resolved in the 'final version' of the AO "to be distributed soon".. I hope.

Just sign me:
I don't CARE what the rules are just as long as I know what the rules are.
<_<

~~ :twisted: Except that I may want you to re-write them to suit me :p :lol:
come to think of it:
:rofl: :rofl: :rofl:
 
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