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Two Clients andr One Borrower?

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Charlotte Dixon

Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Delaware
Lender #1 requested an appraisal on Mr. Smith's property 5 days ago. Appointment has been set for 3/10 at noon for a full URAR appraisal, as per my conversation with the borrower. I rarely do work for this secondary lender.

Lender #2 requested an appraisal on Mr. Smith's property 2 days ago.......a 2055 Exterior. Lender #2's loan officer said that Mr. Smith is not going to go with Lender #1, so disregard that 3/10 noon appointment. No conversation with this lender, just a fax. Lender #2 is my number one big money maker client. (I know, doesn't matter)

Guess I'm in the middle of a petunia contest. Lender #1 is my client and I'm not going to call him and say I'm not doing the appraisal on 3/10 because the borrower found another lender.

Realistically, and ethically, I believe I should call the borrower and let him straighten this out. What you think?
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
1. If this is a refi, call the borrower and ask them which lender they are going with. It may be Lender 3.

2. You have an appointment anyway, so go for it, and sort out the lender when you get there.

The bottom line is that if Lender 1 isn't doing the loan, they're not going to pay for an appraisal, so it behooves you to get your ducks in line first.

Roger
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
I like Rogers comments. Just to add a bit more of my thoughts, the HO canceled the deal.

If the borrower doesn't want to do business with lender 1, I'd call lender 1 and let them know that the deal was canceled by the HO. I don't get into patching the LO's failing business deals. I just let them know that the HO canceled and move on. Note the HO's comments in the file, and stick it in the "canceled drawer".

New file for lender 2, new appointment with HO.
 

Roger

Junior Member
Joined
Jan 24, 2002
Professional Status
Certified General Appraiser
State
Missouri
I've had the same thing happen, more than once, only both lenders are good clients.

I've solved it by calling the borrower, telling them it will have to be a COD. I show the borrower as the client, and send the completed report to the borrower.

Let them take the appraisal where they want it.

I'm not sure that this is the correct thing to do per USPAP, but it works for me.
 

Ray Miller

Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
I have had this happen several times in the past few months. I called the lender that place the order first and tell them I just received another order from another lender. No name disclosed. I then call lender two and tell them I already have an order. I tell both lenders they need to advise me, if they want me to continue with the report. If so it will be payment in advance.

Sofar one of the lenders will call me back and cancle the order. Both remain happy. Because the one that has lost the account can move on to something else.

I have one the last week where they had three lenders trying to work a deal for them.

I am also geting more calls to change the lenders name. Because the first loan did not go through. The owenr is shopping around for another lender.

I have been charging for the name change if I have been paid on the first report. If I have not been paid on the first report. I tell the new lender that it is payment in advance to change the lenders name. If agreeded, I then call the former lender and tell them to take it off their books because I have been paid by the current lender, do they have a problem with it.

Once in a while they do. If so then I don't. And they will need to seek an appraiser elsewhere.

Ray Miller
 

Frederick R. Ruffell

Senior Member
Joined
Jan 21, 2002
Professional Status
Certified General Appraiser
State
California
Ray,
hate to tell you but I think you are in violation of USPAP on the name chane thing. New client = new assignment, you cannot just "name change" but must re-inspect, look at new market data, and (if you wish) incorporate by reference, or attachment the first report.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
8O Like Fredrick, I have concerns for you.
I have been charging for the name change if I have been paid on the first report.
It can be released, with the prior clients WRITTEN permssion, but no changes what so ever on the report. Including....errr.... especially the date. NO UPDATES (AKA Recerts :roll: ) for the NEXT lender. It needs to be a new appraisal order.
I then call the former lender and tell them to take it off their books because I have been paid by the current lender
This "former" lender is still your PRESENT client. :wink: I'd get a statement from the borrower that the previous deal is dead, notify the client that the homeowner doesn't want to meet for the appraisal appointment, close that file, and start a new file. If you charge one fee, or waive the inspection fee, that's your bizniz decizion.
 
Joined
Jan 17, 2002
Professional Status
Retired Appraiser
State
Oregon
Well, just now have a situation with-- one borrower and open orders from two lenders at the same time. Lender 1 order predates Lender 2 order by five days. Borrower pays me at door, says send report to Lender #2. One week later, Lender #2 sends closong docs with 1/2% higher rate than first quoted (during this time rates dropped 1/2%) and an onerous prepayment penalty. Borrower refuses to sign, goes to Lender #1, which I have still on books. Borrower now sends me a letter saying in essence "send same report to Lender 1."

I had two clients for same report at same time. Neither has cancelled but one of the deals is dead. Also, both lenders were aware of the other lender ordering the report.

So, should I name change the completed report for Lender 1 and send it?
What, if anything, do I owe Lender 2 in terms of notice since they obviously already know the deal is dead for them? If they were asked and refused to release the report, would not they be in violation of one or another interstate commerce rule on fair competition?

My inclination is to change the name, send the report and leave Lender 2
to his or her misery. Based on the fact the report does them no good now
so what would be their objection and what right would they have to interfere with Lender 1 and the borrower at this point?

Craig in Oregon
 

Don Clark

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

Hate to break this to you folks, but............in accordance with the 2003 USPAP, comments by the Chairman of the ASB, et al, as well as attendance at the USPAP instructor certification course:

The "Appraisal" is the intelectual property of the appraiser who performed the appraisal, The "report" is the only thing that belongs to the client. You can do as many reports, and as often as you like, and for whomever you want, based on the appraisal that you own. Each request is a new assignment. There is no language in USPAP that requires an inspection or reinspection of any property. You might wish to limit your liability in making sure the property is still there, and if any newer information is available, but no specific requirement to do so.

I might also suggest that you not reveal aything that is confidential to one client to another client. In my view, you may have a problem with confidentiality if you discuss the prior report with a "new" client. Just do the darn thing, and.........dare I say it :?:

Get a fee from all of them.

Don Clark
 
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