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Transfering appraisal from Lender.

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Cliff Salisbury

Thread Starter
Senior Member
Joined
Jan 16, 2002
Professional Status
Retired Appraiser
State
Ohio
I have a loan officer that is moving from one lender to another. His present lender can not get his loans processed and closed in time. I know this is true by the questions the underwritters ask me. Can someone tell me what the proper way is to have the appraisal assigned or transfered to the second lender?
 

AC King

Sophomore Member
Joined
Jan 20, 2002
The borrower can request a transfer from one FHA approved lender to another. It is done via computer similar to an original request for a case number. Ask loan officer to have processor at new company to request a reassignment of case number. The appraisal will automatically be reassigned.

The new lender may require a revision of the appraisal listing their company and HUD as the clients and intended users in lieu of the previous lender and HUD.

It if a relatively simple process and happens frequently.
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
8)

Be Careful. Unless HUD/FHA takes the position that they are the client(They don't, they consider themselves to be an intended user---it's in the Handbook), then USPAP requires that you first get approval from the client that you did the appraisal for to transfer to new client, and a request from new client to you requesting that you reasign to them. The new client should do this for you. They simply need to request a reassignment from original client, and copy you with request that you reassign to them. HUD/FHA has stated that their registered appraisers must comply with USPAP, and this is what USPAP requires, no matter how easily HUD/FHA allows for automatic reassignment. (See A0-3 & A0-10, 2002 USPAP).

Don
 

AC King

Sophomore Member
Joined
Jan 20, 2002
Don Clark,

4150.2, page 1-3 states "... the appraiser provides services for HUD programs, and therefore, has an obligation to perform these services commensurate with the standards and requirements of HUD. This dual responsibility of the appraiser is recognized in the review and reporting requirements of HUD."

Under the HUD/FAQ's - The URAR and Other Issues, number 4, it begins "An appraisal performed for HUD/FHA purposes requires that ..."

The manual specifically mentions "the intended user of the appraisal report is also HUD" and although it does not specifically state that HUD is one of the clients, by stipulating that the appraiser has a "dual responsibility" it appears to me that HUD is also one of the clients in an FHA insured loan transaction. The questions begs, how can one have a responsibility for an entity other than the client or clients? Of course, like almost everything else in appraising, if it is not specifically written it is up to individual appraiser interpretation.

To clarify this issue for all readers of this forum, I will send an e-mail to my local HOC and ask that specific question. I'll post the answer when received.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Also make sure you have a letter in your work file from the original lender authorizing you change the client on the appraisal report. Just because the Loan Officer moves from one company to another does not constitute approval.
 

Charlotte Dixon

Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Delaware
Right, Mike...just like real estate salespeople....
Listing or Loan is with company, not person
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
8)

HUD is an intended user. They have never claimed to be "The Client". I suggest you contact Brent Pick at REAC. However, VA considers themselves to be the client. However, the VA Regional Office in Roanoke, VA said that if a lender wants an apprailsal transferred to another lender, they need no approval from VA. However, if they insist on having their name on the report(VA does not require it), then the lender should get the OK from lender the appraisal was done for, and request the appraiser change the client name, after providing the appraiser with the release, so the appraiser can comply with USPAP.

HUD has never stated, anywhere, that they have any jurisdictional exception to any part of USPAP. If you read the handbook carefully, you will see that is the case. They consider the lender the Client and themselves(HUD) as an intended user. You must follow USPAP as I have previously pointed out by referrencing the appropriate parts of USPAP. BTW, both VA and HUD does not prohibit charging for such reassignment.

Don
 

mbrunson

Sophomore Member
Joined
Jan 29, 2002
Professional Status
Certified Residential Appraiser
State
Nevada
Salisbury,

To answer your question...in long form:

1. The original client has controll of the FHA case #. Getting a copy of the FHA case # assignment with the new company indicated as the lender is all you need. (a quick phone call to your original client might be a good CYA).

2. AO-10 of USPAP deals with this issue and clearly states, "... Simply changing the title page or transmittal letter of an appraisal report without full disclosure of the original appraiser-client relationship is misleading."
So...Disclose the original relationship, indicate that the appraisal has been assigned by lender "a" to lender "b", you're done.
I can't imagine anyone providing this service for free.

3. FIRREA makes any kind of re-type or re-assignment unnecessary. Any lending institution can use any appraisal completed for another lending institution. The fact that many lenders require their name on the report when it's not necessary makes me more than happy to charge them for the service.

Ask your LO to provide a copy of the case # assignment with his new company indicated as the lender, re-type the report adding the disclosure lingo and collect a fee for this additional service.


SDG
Mike
 
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