• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Restricted Appraisals For Bank Clients

Status
Not open for further replies.

Semi Pro

Thread Starter
Freshman Member
Joined
Jan 2, 2013
Professional Status
Certified General Appraiser
State
Louisiana
I am seeing more and more often banks requesting Restricted Appraisals/"Evals", but that their indicated intended users are "Bank and/or affiliates". I argue that with a Restricted Appraisal the intended user should be "Bank only" but I have others telling me I'm just too uptight about who might read the appraisal. I don't care who reads it, I care about who I am liable to and writing a USPAP-compliant report, which I think this contract would require me to violate by writing a Restricted Appraisal with intended users other than the client listed. Am I crazy to see it this way?
 

Stephen J. Vertin MAI

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Illinois
I understand your concerns with problems. No one wants that. I have been writing restricted reports for banks since 2009, generally for loan monitorization (there are very legitimate reasons for these reports). Just make sure you cover all 12 points required by USPAP and the report is for one user (your bank). I have never had problems but I do a summary of the most important indication of value (but it is not required). Yes there is a lot of business in this area. Actually there are classes now on the subject.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
I think its best to put a Restricted Report on the FNMA form that uses disappearing ink.
 

Semi Pro

Thread Starter
Freshman Member
Joined
Jan 2, 2013
Professional Status
Certified General Appraiser
State
Louisiana
I understand your concerns with problems. No one wants that. I have been writing restricted reports for banks since 2009, generally for loan monitorization (there are very legitimate reasons for these reports). Just make sure you cover all 12 points required by USPAP and the report is for one user (your bank). I have never had problems but I do a summary of the most important indication of value (but it is not required). Yes there is a lot of business in this area. Actually there are classes now on the subject.
Right, I have no problems with the concept of writing a Restricted Appraisal for a bank, my concern is the contractual requirement to include "and/or affiliates" as intended users.
 

Stephen J. Vertin MAI

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Illinois
I understand, and cant help with that part. You need to talk to the bank and point out the issue (sounds like you are dealing with Wells)
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
Your not crazy. However....

Restricted reports require that the client is the only intended user (as you point out).
1. There can be more than one client; so, it is possible to have more than one client and anyone/entity who is a client will be the intended user in a restricted report.
2. "Bank and/or affiliates" is a little broad. Without knowing what affiliations are referenced, I'd be hesitate to make that broad-identification as a client.
While the USPAP allows for identification of the "intended users" by "type", I don't see where it allows for the identification of the client by "type":

I guess there may be some legal basis that would cover "affiliates" in the context we are talking about (it is explicit that "affiliates" are parts of the bank... i.e., they are one in the same) but someone would have to show me that.
 

gregb

Elite Member
Gold Supporting Member
Joined
Sep 3, 2011
Professional Status
Certified General Appraiser
State
California
I think "affiliates" is too ambiguous. Make the bank name the affiliates so the appraiser knows the actual intended user(s) of the report.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
The bottom line is that they want it cheap as a compliance document and couldn't care less about your liability.
 

gregb

Elite Member
Gold Supporting Member
Joined
Sep 3, 2011
Professional Status
Certified General Appraiser
State
California
The bottom line is that they want it cheap as a compliance document and couldn't care less about your liability.
Oh, and here I was thinking it was similar to checking the box like Vanguard asks, if they can share my contact information and email with their affiliates, such as life insurance, plumbing contractor, therapist and landscaping service companies. :)
 

Stephen J. Vertin MAI

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Illinois
"I'd be hesitate to make that broad-identification as a client".

I am not sure I am making such a broad identification when AI's quarterly magazine had a 2 or 3 page article on this issue and how it relate directly to one user. They made the name of the culprit very clear.

"The bottom line is that they want it cheap as a compliance document and couldn't care less about your liability"

Maybe with some, but I believe there are properties and situations where self-contained or even summary reports (as they use to be called) are not required. Further given the need, (which in most case appraisals are not required) they are actually creating business with the product. Just make sure the product is appropriate for the job. That is your call not the clients.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks