Sending An Xml Copy Of An Appraisal To A Lender Who Is Not The Original Client

[Jen Quinn]

I promise I looked for an answer to this specific question before posting. I, in fact, scoured all of the interwebs in search of clarification. Alas, I found none. . .

I did an appraisal in June for Bank A. Yesterday I got a call from the borrower saying they switched to Bank B. Bank A sent the borrower a release letter stating that Bank B was authorized to rely on the results of my report and sent them a PDF of it. Bank B is now saying that they require an XML copy, but can't get it from Bank A, so they want me to send it to them. Nowhere in the release letter am I named specifically, nor I am personally requested to release my report to bank B.

My question is this: Is there a legal/ethical/potentially USPAP-violating reason that I cannot send Bank B an XML version of a file that they already have in PDF form as given to them by Bank A?
(Sub-question: Is the release letter from bank A placed in my work file enough to cover my bases?)

(On a side note, I did contact the AMC from which I originally received the order, and they said the Bank B should request an XML copy from Bank A.)

AO's 26 & 27 don't really seem to address this, as it's not really a reassignment on my end.


Thanks in advance for your help!

 

[Mike Kennedy]

AMC from which I originally received the order, and they said the Bank B should request an XML copy from Bank A.

Agreed.

 

[Jen Quinn]

Thanks Mike, that's what I decided too.

 

[BRCJR]

From Post # 1: Bank A sent the borrower a release letter stating that Bank B was authorized to rely on the results of my report and sent them a PDF of it.

Bank A did not need to do that nor does Bank B need such. Sending the pdf, at the customers request, yes, they must do so.

The authorization and release junk is just that, junk.

A lender does not need another lender to "allow" the use an appraisal. Federal regs already address that.

All the second lender must do is confirm that AIR was followed and they have a true copy.

Someone correct me if that is not the protocol.

 

[hastalavista]

BRCJR needs no correction; he is correct.

As to sending a XML copy, just keep it simple and look at it this way: Is someone other than the client asking me to send them confidential assignment results?
It doesn't matter what the format is (could be written, a pictograph, or you could sing it to them in a song) the issue is "confidential" and "assignment results".
If the answer to the question is "yes", then the first reaction is "I cannot send them anything that would violate confidentiality". That ends the discussion.

Now, let's go to Step #2: What if the original client tells the appraiser there is no confidentiality issues and the appraiser can go ahead and send the appraisal to another client and, if they so desire, can send it in an XML format. Can that be done?
Yes, the appraiser could agree to that (read the above carefully; a client can authorize an appraiser to provide a copy of that client's appraisal to another party and the appraiser can do that; the appraiser isn't changing anything; the appraiser is just forwarding the appraisal to another party with the client's authorization).
But for a residential mortgage finance transaction, I wouldn't (as a rule). I don't want to engage with Client B because I don't want a hint that I'm creating some kind of appraiser-client relationship. Client B has a formal process (in post #4) to use a pre-existing appraisal; it was designed for this very scenario. It is the one that should be used. So, while I could send Client B a copy of the appraisal if my original client asked me to, I am not required to do so and would (normally) not do so.

Good luck!