Transfering an appraisal report

[Bob Ipock]

Client A issued a transfer letter to client B

There is no such legal doccument in the appraisal world for a "transfer letter". The appraiser can't "transfer " an appraisal he can simply issue a new nreport. "Transfer letter" is a term used by mortgage brokers and lends who don't know USPAP. USPAP page 131, lines 6 -10. Lines 23-26. The fee for a new assignmet is up to you. I could be free, $50.00 or $500.

 

[App601]

USPAP 2020-21 "CLIENT: the party or parties (i.e., individual, group, or entity) who engage an appraiser by employment or contract in a specific assignment, whether directly or through an agent."

"INTENDED USE: the use(s) of an appraiser’s reported appraisal or appraisal review assignment results, as identified by the appraiser based on communication with the client at the time of the assignment. 7

INTENDED USER: the client and any other party as identified, by name or type, as users of the appraisal or appraisal review report by the appraiser, based on communication with the client at the time of the assignment. 8

Opinion: new Client- new appraisal assignment.


"CONFIDENTIALITY: An appraiser must protect the confidential nature of the appraiser-client relationship.14 An appraiser must act in good faith with regard to the legitimate interests of the client in the use of confidential information and in the communication of assignment results. An appraiser must be aware of, and comply with, all confidentiality and privacy laws and regulations applicable in an assignment.15 14 See Advisory Opinion 27, Appraising the Same Property for a New Client. 15 For example, pursuant to the passage of the Gramm-Leach-Bliley Act in November 1999, some public agencies have adopted privacy regulations that affect appraisers. The Federal Trade Commission (FTC) issued two rules. The first rule (16 CFR 313) focuses on the protection of ”non-public personal information” provided by consumers to those involved in financial activities “found to be closely related to banking or usual in connection with the transaction of banking.” These activities include “appraising real or personal property.” See GLB-Privacy. The second rule (16 CFR 314) requires appraisers to safeguard customer non-public personal information. See GLB-Safeguards-Rule. Significant liability exists for appraisers should they fail to comply with these FTC rules."

I agree 100% My intended user is Bank A and only Bank A can ask me for revisions or corrections to the appraisal report. It would have been more simple if Bank B had asked me for a lender change which is a NEW assignment and I would have accepted all reasonable revisions. However is there something specifically written in the manuakl that says that the transferee can not askl for revisions? I have not found it

 

[BRCJR]

A second lender can use the report "as is" or obtain their own valuation.

USPAP doesn't disallow anyone from asking for revisions. USPAP does address the situation and how an Appraiser is to handle and/or comply with the situation/requests.

 

[RSW]

I agree 100% My intended user is Bank A and only Bank A can ask me for revisions or corrections to the appraisal report. It would have been more simple if Bank B had asked me for a lender change which is a NEW assignment and I would have accepted all reasonable revisions. However is there something specifically written in the manuakl that says that the transferee can not askl for revisions? I have not found it

The intended user has nothing to do with requesting changes to an appraisal. Intended user can be anyone identified by the appraiser in the appraisal report. That does not make them the appraiser's client. An intended user can request a change be made, but the appraiser cannot just make the change. There has to be a client relationship between the requester and the appraiser.

 

[App601]

There is no such legal doccument in the appraisal world for a "transfer letter". The appraiser can't "transfer " an appraisal he can simply issue a new nreport. "Transfer letter" is a term used by mortgage brokers and lends who don't know USPAP. USPAP page 131, lines 6 -10. Lines 23-26. The fee for a new assignmet is up to you. I could be free, $50.00 or $500.

Exactly thats AO 26 and I cited it for not accepting revising the report.

 

[App601]

The intended user has nothing to do with requesting changes to an appraisal. Intended user can be anyone identified by the appraiser in the appraisal report. That does not make them the appraiser's client. An intended user can request a change be made, but the appraiser cannot just make the change. There has to be a client relationship between the requester and the appraiser.

Excellent So the only one allowed to change or revise the report is my client. However my intention when starting this thread was that if it is written in the manual that if a report is "transfered" to another institution if it says that the other institution is not allowed to ask for revisions. Apparently it is not.

But the point that you bring of client relationship is SOLID

Bank B can ask me if it is a NEW assignment

Thanks for an excellent comment

 

[The Warrior Monk]

I agree 100% My intended user is Bank A and only Bank A can ask me for revisions or corrections to the appraisal report. It would have been more simple if Bank B had asked me for a lender change which is a NEW assignment and I would have accepted all reasonable revisions. However is there something specifically written in the manuakl that says that the transferee can not askl for revisions? I have not found it

A non-client can ask for revisions all day long. It still doesn't make them your client. Regulations don't have to be written in a manner that addresses every non-relevant situation.

 

[App601]

A non-client can ask for revisions all day long. It still doesn't make them your client. Regulations don't have to be written in a manner that addresses every non-relevant situation.

Loud and clear But when you have a pestering party requesting something I always wanted to "throw them the book" to support my action. So in the absence that it is specifically written in an AO or FAQ the appraiser-client relation is the most solid Best regards

 

[Elliott]

I've said this many times, it can be Bank B, it can be an attorney, it can be a government agency, it can be another appraiser, "The rules of confidentiality for an appraiser essentially require me to say, I can neither confirm or deny that I did an appraisal on the property address you mentioned. I'm sure you can understand that." The conversation can take many different directions after that, one of which is a new assignment for Bank B.

 

[App601]

I've said this many times, it can be Bank B, it can be an attorney, it can be a government agency, it can be another appraiser, "The rules of confidentiality for an appraiser essentially require me to say, I can neither confirm or deny that I did an appraisal on the property address you mentioned. I'm sure you can understand that." The conversation can take many different directions after that, one of which is a new assignment for Bank B.

Man this is MLB However how can I say that if Bank B shows me a "transfer" letter? However I believe I c an say "Any revisions to my apraisal report has to de chanelled and authorized by my client