VA appraisal changed to conventional loan

[Terrel L. Shields]

Or should I just change to lender name?

Nope. Never do that.

 

[Zoe]

Nope. Never do that.

Teach them Terrel.

 

[Zoe]

Terrel is telling you that you need a new client/appraiser confidentiality agreement. You need engaged by a new client. VA was your client along with the lender. Now, you have a new client and new assignment.

Keep it as clean as you can. If I were you, I would ask VA for advice.

I would put all of it in my workfile. I would start new assignment with new client.

Your whole engagement process changes with new client.

Look up the definition of privity. Match the definition of privity with appraisal and you will know where Terrel is coming from.

 

[Zoe]

Don't let a lender make their problems your problem.

Always focus on real property rights and your client on MV appraisal.

 

[Zoe]

I was tired last night. Have you ever heard of the term "CYA"? It means cover your A.

 

[Tom D]

Tell them, I can no do that, the state rules prohibit me. I don't make the rules, i just follow them. Now i can do a new lender appraisal, at a discount (cause it's basically a clone time wise).
Sure, glad i could help you and save the buyer a full new appraisal fee.

There is no rule anywhere that you can't appraise that property a hundred times with a hundred different lenders, unless lender specifically tells you not to, in their engagement letter.

 

[Zoe]

VA appraisals are typically good for certain time frame with same effective date for the veteran and they can transfer the appraisal to a new lender. VA does the transfer. You don't.

Always remember you have a confidentiality agreement with your client(s). Ethics rule.

If veteran says I want to change lenders, VA will likely honor the veteran's request within a certain time frame.

VA will not transfer the appraisal to a conventional loan lender. VA is your client.

 

[Mile High Trout]

OP said; 'They want me to change'. Who is They?

VA would most likely never approve such a request.

What you're really dealing with is a desperate borrower whom has exceeded all VA allowances and now a lenders MB is finding innovative ways to still line up a commission.

I've turned down several orders over the past few years because when I look at borrowers mortgage history, I see they had a long history of going through VA loan programs, but now are seeking conventional.

When they can no longer refi through VA and have to dip into conventional lending is when you know the borrower is likely in trouble. That's a high risk loan to be involved with.

The proper chain of command in terms of loan type superiority; VA, conventional, FHA, hard money lender. If they go the wrong direction down the ladder instead of up the ladder; you've got problems.

 

[Mile High Trout]

Nope. Never do that.

How do appraisers not know how to use the search tool on this and other websites?

Send them down the rabbit hole; appraisal assignment transfers and portability.

Because if they don't understand these rules, they should not be completing GSE assignments in the first place.