USPAP violation to get on "Appraiser List"

[BlueDog007]

We have asked numerous clients and are getting the same results! Apparently, our clients are well informed and understand the privacy laws. I wonder if this bank would allow me to send out copies of reports I have completed for them to 3rd parties. I bet not!

 

[airphoto]

Ric,

You've already completed ten reports for them? Time to ax them, separately, for permission to supply one or more of those reports to another lender as you've been requested by that lender to provide sample reports! Let the fur fly ..

Remember, Lenders/Banks hire clerks and promote from within ..

 

[Mike Garrett RAA]

Well...you still have two other options. My point...redacting too much leaves the report worthless to someone trying to determine if you are worthy...SMILE.

 

[BlueDog007]

Mike-

I understand! In my opinion, deleting the owner, address, tax parcel number, and lender name doesn't make the sample report worthless. A qualified reviewer can certainly look at the procedures, comments, methods, etc... of the report to "qualify" an appraiser. That's all they are trying to do! Verifying the subject property vs. an AVM model or such vs. my final opinion of value is outside of the scope of the approval process IMO.

 

[Mike Garrett RAA]

I was told, by a usually reliable source, their company verifies all the data in the report also. Point in question...there are ways to use appraisals as samples and be compliant. Best wishes!

 

[Kevin Mc]

Geeezzzz....maybe a 7 hour USPAP update class should be taken once a month! Please read FAQ 40, USPAP 2008, page F-19.

Certainly is a bit scary.

 

[Elliott]

Brother-in-law Appraiser: Good morning to you. Have any new assignments for me??

Mrs. Bank VP: Mornin' Bill. Sorry, Hon, not today, but I'm
working on a few.

Appraiser: Hey, what ever happend to that Ric-guys application to
get on the list?

Mrs. VP: He won't give us the addresses, so its going nowhere, just like
they always do. Its like that Darrlington County Springstien song , "He
don't work so he don't get paid."

Appraiser: Yeah, GLB and USPAP screwed the pooch on that one.

Mrs. VP: Well, you have a nice day, okay? Thompson and I are going
to have a BBQ on Sunday and watch the playoffs, were all wearing our
Bobcat jerseys. Can you and your lovely wife make it?

Appraiser: We'll be there. Thanks. Love to the family.

 

[BlueDog007]

Mike-

Here is FAQ 40, USPAP 2008:

FREQUENTLY ASKED QUESTIONS

40. CONFIDENTIALITY AND SAMPLE APPRAISAL REPORTS

Question:
I have been looking for new clients and found that many request sample appraisals for review, but I’m concerned that I would be in violation of appraiser-client confidentiality by providing them. To alleviate this problem, I’m considering including the following disclaimer in the “fine print” of my reports:

“The appraiser reserves the right to utilize this report in its entirety as sample work for the purpose of soliciting prospective clients unless written refusal is received from the client.”

Does USPAP allow me to do this?

Response:
No. The client, not the appraiser, determines who may receive the appraisal report. The Confidentiality section of the ETHICS RULE states, in part:

An appraiser must not disclose confidential information or assignment results prepared for a client to anyone other than the client and persons specifically authorized by the client…

Including a statement indicating that the report may be used as a sample does not constitute client authorization to distribute copies of the report.

One solution is to obtain client authorization to use each report as a work sample. An alternative solution may be to redact all confidential information from the report before providing it as a sample. The Comment to the Rule states:

When all confidential elements of confidential information are removed through redaction or the process of aggregation, client authorization is not required for the disclosure of the remaining information, as modified.

THAT'S PRETTY CUT AND DRY I BELEIVE. THE BANK SAYS IT'S A DIFFERENCE IN INTERPRETATIONS OF THE LAW! I DON'T SEE IT THAT WAY AT ALL!

 

[George Hatch]

You could always ask what makes them think they understand USPAP better than the Appraisal Standards Board.

 

[larryhaskell]

What other profession (and I use that term loosely) has to provide confidential information to potential clients for them to consider engaging your services? If a potential client needs some type of indicator of your abilities, why don't you have some of your good clients send them a letter of recommendation on your behalf? And some on this forum wonder why banks, lenders, mortgage brokers, etc., hold appraisers in such low regard.