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Request from a different mortgage co.

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Anonymous

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I just got a call about an appraisal I did about a month ago. The home owner paid for the appraisal and I have already been paid myself. Ends up that the home owner changed his mind about using the original mortgage company and now has decided to go with another one.

I get the call from the new mortgage company asking if I could send them a copy of the appraisal listing them as the new client. The home owner is fine with this but I never got a request like this before.

Should I charge them something for the effort? Can I do this? It's Friday, I'm confused.
 

Neil (Texas)

Sophomore Member
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Jan 16, 2002
Professional Status
Certified General Appraiser
State
Texas
Question: Who was the original client? Original Lender or Owner?

Comment: If the original lender ordered the appraisal, then the lender is your client.

It matters not who paid for the appraisal. USPAP defines the client as: "The party or parties who engage an appraiser (by employment or contract) in a specific assignment.

Check out AO-10 of the USPAP.
"The appraiser has a personal obligation and a professional responsibility to avoid any action that could be considered misleading and to protect the confidential nature of the appraiser-client relationship. Simply changing the title page or transmittal letter of an appraisal report without full disclosure of the original appraiser-client relationship is misleading."

In essence, when the second lender requests a "copy" which identifies them as the client, a subsequent appraiser-client relationship is being established; a second assignment is begun.

In such situation, I require a written release-authorization from the original client.

Should you charge an fee for that service. YES!
 
A

Anonymous

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Thanks,

Perfect answer.

I owe you a cold one.
 

Keri

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Joined
Jan 27, 2002
Professional Status
Certified Residential Appraiser
State
Oklahoma
Okay,

Gotta ask since I haven't encountered this (yet):

When you recieve the letter of release from lender A, and the letter or request from lender B, do you change the original date signed to the date that the report is sent to lender B? Or do you only change lender name/address? Are you required to note in the report that the appraisal was previously prepared for a different lender?



Keri
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida

Okay,

Gotta ask since I haven't encountered this (yet):

When you recieve the letter of release from lender A, and the letter or request from lender B, do you change the original date signed to the date that the report is sent to lender B? Or do you only change lender name/address? Are you required to note in the report that the appraisal was previously prepared for a different lender?

Keri
I do write up a couple of sentences regarding the original lender, the letter(s) in my files authorizing the change and put the new signature date on the new one. It all is CYA.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
But don't confuse the date of the appraisal, or inspection date, with the date the report was signed. I don't change the date of the apprasal with out doing another inspection (more $'s than just reprinting).
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
When I receive a request from Lender B to retype the clients name, I do not do anything until I have written permission from Lender A. Then I reproduce my report without any other action like looking at the property or new info. On the retyped report with only the client name changed I have the following comment on page one of the URAR:

"This appraisal report was originally prepared for ABC Mortgage Company and with written permission on file in my office, the client has been changed to XYZ Mortgage Company."

On page two of the URAR (pages, letters and addendums get lost and rearranged):

The original signature date was 01/02/2001, the effective date for the opinion of value remains 01/01/2001, however the signature date indicated below (02/02/2002) reflects the transfer to the XYZ Mortgage Company with written permission from the original client, ABC Mortgage Company."
 

MARKETVALUE

Sophomore Member
Joined
Feb 11, 2002
Professional Status
Certified Residential Appraiser
State
Georgia
Keri said:
Okay,

Gotta ask since I haven't encountered this (yet):

When you recieve the letter of release from lender A, and the letter or request from lender B, do you change the original date signed to the date that the report is sent to lender B? Or do you only change lender name/address? Are you required to note in the report that the appraisal was previously prepared for a different lender?



Keri



I don't. I only change the lenders name and address. They are requesting the original appraisal, so I give them the original appraisal in their name. I dont know what kind of liability you may come into by changing the sig date, but if you do, i would make damn sure you disclose in the addenda that you have and the gist of the original appraisal. I have never had a lender ask me to change the sig date, dont know why they would need that. And by all means dont change the inspection date............

MRM
 

bradellis

Member
Joined
Jan 16, 2002
Keri,

Even though you get a release from confidentiality from the sirst client, the effective date does not change; however, you may want to ask the new lnder if they want an update.

Since I charge for these changes, I always ask this. Sometimes they say yes, and so I get an increased assignment and a larger fee.

DO get that release in writing. Technically, it is not required, but I'd hate to see you have to defend yourself in court when you can avoid it by being prudent.

Brad Ellis, IFA, RAA
 

Doug in NC

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
My understanding ( after a recent dusting off and reading of USPAP ) is that if you know the appraisal is going to be used by a lender, YOU the appraiser have the responsibility to inform the homeowner that the lender is required to order the appraisal (AO-10). I don't like it, but that's USPAP. :p
 
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