USPAP 2010 disclosure, confidentiality

[W Evers]

I'm having having problems getting my arms around this new edict.
It states in the comment that

Disclosing the fact that the appraiser has previously appraised the property is permitted except in the case when an appraiser has agreed with the client to keep the mere occurence of a prior assignment confidential. If any appraiser has agrred with a client not to disclose that he or she has appraised the property, the appraiser must decline all subsequent assignments that fall within the three year period.

My question is how do you accomplish the client agreement for the disclosure of that previous assignment? Do you call the previous lender an ask them for a release? If there was an AMC involved in the previous assignment, who do you contact? If you do contact the previous client are you breaching your confidentiality with you current client?

 

[Joyce Potts]

Whatsamatta? This doesn't make sense to you?

USPAP -- Written BY the lending industry, FOR the lending industry.

You're looking at a lame attempt by the lenders and their PAC politicians/regulators to give the appearance of an additional level of non-collusionary practices, IMO. Number shopping, comp checks, etc., because as WELL ALL KNOW COMP CHECKS ARE APPRAISALS!!

How much sense does this make when compared to all the HOOPLA of the confidentiality provisions from the last set of revisions and GLB (Graham, Leach, Bliley)?

Why don't they just grow a pair and mandate the recording of HUD-1's, re-define and interpret the existing laws, regulations and guidelines to insure compliance by appraisers and lenders and advocate sincere, honest disclosure and transparency instead of throwing more ambiguous fecal matter on the wall for everyone to argue about the meaning; gray areas to invoke when convenient; and lawyers to profit over in court?

They continue to make it more complicated rather than simplify it. Give the appearance of concern and reform today while positioning themselves for the next big wave of profits--and when they fail again, another bailout.

I can't wait for the responses to this one.

 

[moh malekpour]

I'm having having problems getting my arms around this new edict.
It states in the comment that

Disclosing the fact that the appraiser has previously appraised the property is permitted except in the case when an appraiser has agreed with the client to keep the mere occurence of a prior assignment confidential. If any appraiser has agrred with a client not to disclose that he or she has appraised the property, the appraiser must decline all subsequent assignments that fall within the three year period.

My question is how do you accomplish the client agreement for the disclosure of that previous assignment? Do you call the previous lender an ask them for a release? If there was an AMC involved in the previous assignment, who do you contact? If you do contact the previous client are you breaching your confidentiality with you current client?

USPAP 2010 requires the disclosure of the prior appraisal of subject property within last 3 years. This is very clear.
If you appraised property A and made an agreement with your client not to disclose your appraisal on that property and you get an assignment within 3 years from another lender to appraise that property again, you should turn it down because based on your agreement you cannot disclose your prior appraisal on that property. If you don't disclose your prior appraisal within last 3 years on that property, you have violated the USPAP. If you disclose it,you also have violated the USPAP because you have agreed with your previous client not to disclose it. So, the best option is not to take that assignment.

 

[W Evers]

Let me make sure I understand what your saying;
So, If you had no prior agreement with the former lender. Its presumed the former lender will have no issue with that confidentiality being breached?

 

[CANative]

"I have performed valuation services with regard to the subject property during the previous 36 months. I cannot disclose the nature of these services due to client/appraiser agreements."

 

[moh malekpour]

"I have performed valuation services with regard to the subject property during the previous 36 months. I cannot disclose the nature of these services due to client/appraiser agreements."

Your case is a good example:
You are bound with the agreement not to disclose your appraisal with no time limit on it. if your assignment is after 3 years, you are not required to disclose your prior assignment anyway and you have no problem here, however, if you got your assignment on that property within previous 36 month, you are required by USPAP to disclose your prior assignment. Now, you have a conflict here. If you disclose it, as it is required by USPAP because it is within 3 years, you have breached your agreement of not to disclose. If you don't disclose, as you are bound by your agreement, you have violated the USPAP because it is within 3 years. Your option in this case is to turn it down.

 

[Lee Lansford]

Let me make sure I understand what your saying;
So, If you had no prior agreement with the former lender. Its presumed the former lender will have no issue with that confidentiality being breached?

If your past client and you did not have an agreement for you to NEVER disclose the mere fact that you appraised the property (and, such would be very rare, I have to imagine, if you've been appraising for residential lending use), there is no "confidential" information to divulge.

 

[moh malekpour]

Let me make sure I understand what your saying;
So, If you had no prior agreement with the former lender. Its presumed the former lender will have no issue with that confidentiality being breached?

If you haven't made any agreement with your prior lender not to disclose your appraisal on your subject property, you haven't made any agreement with your client to keep your prior assignment confidential therefore there is no confidentiality to breach.

 

[W Evers]

I think I see the light

The acknowledgment of a prior assignment is not confidential unless there was a prior agreement with the former lender.

 

[CANative]

If you decline an assignment because you have an agreement not to disclose a prior assignment then you would have to disclose that which would violate the agreement.

What are you going to do? Play mind games with a client who just wants an appraisal?

Client: We need an appraisal of this property.
Appraiser: I have to decline to accept this assignment.
Client: Why?
Appraiser: I can't tell you.
Client: What do you mean you can't tell me?
Appraiser: I can't tell you that either.
Client: You mean you don't want to do this appraisal?
Appraiser: No. I want to do it. I need the work.
Client: Then why can't you do it?
Appraiser: I can't say.
Client: You little @###$@!% I don't have time for this. click
Appraiser: *crying*