Release of report to Homeowner when client no longer exists

[Wayne Tomlinson]

Ask the former almost borrower to order a retroapective appraisal as of the original date.

A brand new assignment, and a little bit higher due to having to do all the old research.

Then the former almost borrower becomes your new client. That should tell your new client everything that he wants to know, and it is legal and compliant.

CAD of course.

Wayne Tomlinson

 

[Lee Lansford]

...Some background. Appraisal was performed for AHM.... Loan officer got in touch w/ be via email. Obviously working for a new company...

Anyway....given person ordering the appraisal (client) is making this request now on behalf of a former customer/homeowner (while not working with the company for which it was ordered), I'm curious as to how others would handle this?

#1...Your client was AHM and NOT the loan officer, right?

#2...Your CLIENT for that past assignment has requested nothing of you, right?

#3...Why, oh, why, would anyone have need of a report of an appraisal that is now 2 years old?!? It's ancient history, is it not? What POSSIBLE relevancy might it have to the present day?

#4...Suggestion: Stop trying to bend over backwards to comply with the request. In simple and concise manner explain (one time!) why you can not comply with the request.
My suggestions are consistent with the USPAP. IF there is something in local law that trumps the USPAP, that would be the only possible exception to what I offer here.

#5...Put it to bed. Move on to something new. Your valuable time is being wasted.

 

[George Hatch]

I can actually think of reasons not to cooperate, with or without the Client's instructions.

 

[Fred]

Dollars to doughnuts the LO wasnt the client, but ordered for the client.

That's not so clear cut, laws of agency and so forth.

#1...Your client was AHM and NOT the loan officer, right?

If "AHM" and not its agents is the client, then an appraiser could never be "authorized" to release copies. Whoever signs any such "authorization" will always be a person and not "AHM," the client.

 

[Carnivore]

Well it looks like we figured out that the appraiser once again is caught betweem a rock and hard place.

The question is now will the homeowner/borrower understand your problem. The answer is probably not or does not care because it does not solve his problem(what ever that is).

So what can happen to you? Well he will probably call an attorney or file a complaint with your state appraisal board. In either case or both, your problems are just beginning. Its now going to get expensive in time and money. If he files a complaint with your board your basically screwed because although there is not basis for the complaint your board will open a file on you. Now you will have them looking into everything.

Your in luck if he calls an attorney. The attorney may advise him to drop it because there nothing to be done. Then again the attorney may try and compel you to give up a copy per court order.

So whats the best solution. Depending on the borrower I might suggest to him to file in small claims court. You two show up, he makes his case and you make yours. The judge will decide and you do what he says. If he says hand it over, then hand it over right there on the spot. Place a copy of the order in your work file. Pay the court cost and move on. This is probably the cheapest way out of this mess.

End of problem, for now!

 

[George Hatch]

Well it looks like we figured out that the appraiser once again is caught betweem a rock and hard place.

Who's this "we"? If there's a problem it's not the appraiser's problem. The borrower's right to access to appraisal reports is spelled out in the Equal Credit Opoortunity Act (ECOA) as well as by various state laws and rules with similar requirements. If the borrower didn't exercise their options within the allotted time that's their failure. If you want to beyond the regs and frame it in moral terms, it was the loan originator whose moral obligation it was to provide the borrower with the report. They're the ones who had a business relationship with the borrower, not the appraiser.

We have requirements and those requirements are very specific. The answer is clear. There is no ambiguity involved. The borrower isn't our client. Unless our client specifically authorizes us to hand it over we can't do it.

I suggest you direct the borrower to contact the state appraisal board. They will repeat and reinforce your message.

You don't even know why this borrower wants the appraisal report. They could be looking to sue somebody for their loan and that somebody could very easily end up being you.

 

[Mr Rex]

George is right, they had a 90 day window, then the window closes.

Sec. 202.5a Rules on providing appraisal reports.

(a) Providing appraisals. A creditor shall provide a copy of the appraisal report used in connection with an application for credit that is to be secured by a lien on a dwelling. A creditor shall comply with either paragraph (a)(1) or (a)(2) of this section.
(1) Routine delivery. A creditor may routinely provide a copy of the appraisal report to an applicant (whether credit is granted or denied or the application is withdrawn).
(2) Upon request. A creditor that does not routinely provide appraisal reports shall provide a copy upon an applicant's written request.
(i) Notice. A creditor that provides appraisal reports only upon request shall notify an applicant in writing of the right to receive a copy of an appraisal report. The notice may be given at any time during the application process but no later than when the creditor provides notice of action taken under Sec. 202.9 of this part. The notice shall specify that the applicant's request must be in writing, give the creditor's mailing address, and state the time for making the request as provided in paragraph (a)(2)(ii) of this section.
(ii) Delivery. A creditor shall mail or deliver a copy of the appraisal report promptly (generally within 30 days) after the creditor receives an applicant's request, receives the report, or receives reimbursement from the applicant for the report, whichever is last to occur. A creditor need not provide a copy when the applicant's request is received more than 90 days after the creditor has provided notice of action taken on the application under Sec. 202.9 of this part or 90 days after the application is withdrawn.
(b) Credit unions. A creditor that is subject to the regulations of the National Credit Union Administration on making copies of appraisals available is not subject to this section.
(c) Definitions. For purposes of paragraph (a) of this section, the term dwelling means a residential structure that contains one to four units whether or not that structure is attached to real property. The term includes, but is not limited to, an individual condominium or cooperative unit, and a mobile or other manufactured home. The term appraisal report means the document(s) relied upon by a creditor in evaluating the value of the dwelling.

 

[Carnivore]

I have not made my point clear enough. Specific to Fannie Mae 3/05 report versions only.

Rock - The USPAP rule is indeed clear and there is no wiggle room.

The borrower is PO'd or demanding something he probably does not have a legal right.

Hard Place - Certification #21 and #23


In the end the appraiser is viewed as the villian, the meany, crooked, hiding something, uncooperative. He should be banned! The appraiser is between a rock and hard place.

 

[Mr Rex]

I avoid the rock and hard place by explaining to the borrowers their rights to a copy of the appraisal at the time of the inspection. If its COD, I give it to them in writing and keep a copy with their signature in my file.

 

[Carnivore]

I avoid the rock and hard place by explaining to the borrowers their rights to a copy of the appraisal at the time of the inspection. If its COD, I give it to them in writing and keep a copy with their signature in my file.

That is the answer for owners that are there when you go.