What exactly are the rules?

[kalli1582]

I am trying to refinance my home. I contacted countrywide (my current lender) and they started the refinancing process, and ordered an appraisal. After a month's work and $500 paid for the appraisal to countrywide, I was denied for a home loan due to insufficent home value. After, I asked for a copy of the appraisal, which countrywide provided to me. I asked them if the rights to this document could be released to me, they told me at that time, they could not release it to me, but would transfer it to another lender. I found another lender, and when they asked countrywide to transfer the appraisal, countrywide told them they couldn't release the appraisal to them, only to me. (which is contrary to what they said previously) Finally I called countrywide and demanded a written release of the appraisal. they responded with a one sentence email stating they released a copy to me, and therefore released the rights to the document. Meantime, my second lender was trying to get two more comparables added to the appraisal by talking to the guy who drafted the appraisal. he only responded once, stating that he couldn't add anything to the appraisal because it was done for countrywide. after we had obtained the email stating countrywide's release of interest, no response was obtained from the appraiser after a week and two days of emails and voice messages. Finally I was forced to order another appraisal from another company, incurring the expense again. My question is what is the rule on appraisal transfer rights? and was what I was asking for i.e. two more comparables, a big deal? what rights do I have here? Is there someplace that I can log a complaint? any help would be great. thanks!

 

[David Wimpelberg]

Appraisals are not transferable. Appraisal reports are prepared under specific circumstances, and if any of those circumstances change, you are dealing with a new assignment. Lenders have the option of accepting reports prepared by another lender, as is, though not through you. Once the new lender requires any changes, including changing the lender name, further market analysis (adding new sales), etc., you are dealing with a new assignment that will likely incur a new fee.

 

[leelansford]

The appraiser completed the appraisal for Countrywide. Countrywide is the appraiser's client. the appraiser owes no obligation to this second lender.

If Countrywide and your new potential lender could not get together regarding an assignment of the appraisal, the appraiser is not to blame.

Your new potential lender could have opted to request a new appraisal from this first appraiser and, I surmise, the process would have moved along a bit quicker and, perhaps, might have saved you at least a few dollars toward the cost of the second appraisal.

 

[kalli1582]

I did inform the first appraiser that I would pay for any new fees that would be associated with adding the two comps to his appraisal, but did not get any response from him at all. after that attempt the new lender did try to order a new appraisal, but no response was given to that request either. in the end it was probably better that no response was given, but with the numerous times that I and the second lender tried to contact him, you would think a simple response declining any action should have been warranted, right?

 

[kalli1582]

I don't think that countrywide gives two hoots about doing anything for anyone, and I am not blaming the appraiser for anything regarding that. I just keep getting told different things about the rules for this particular thing. my second lender informed me that they transfer appraisal to other lenders frequently. but when my second lender asked to assign the appraisal to them, countrywide told them they couldn't. I don't know who or what to believe at this point.

I also told the appraiser I would pay for any fees associate with adding the two other comps onto the appraisal, but I recieved no response. my second lender also tried to contact him for a new appraisal, but no resonse was given.

At this point I am not sure even if countrywide had assigned the appraisal to my new lender, he would have responded in time to meet our deadline to close.

 

[Midwest Guy]

How many sets of underwriters to you want this appraiser to bow down to, for one appraisal fee?

This appraisal report was written to satisfy requirements of Countrywide, not any other lender.

The mortgage business is competitive right now. Tell you Mortgage professional he/she need to provide an appraisal at their cost, if they want your business. :icon_idea:

I am trying to refinance my home. I contacted countrywide (my current lender) and they started the refinancing process, and ordered an appraisal. After a month's work and $500 paid for the appraisal to countrywide, I was denied for a home loan due to insufficent home value. After, I asked for a copy of the appraisal, which countrywide provided to me. I asked them if the rights to this document could be released to me, they told me at that time, they could not release it to me, but would transfer it to another lender. I found another lender, and when they asked countrywide to transfer the appraisal, countrywide told them they couldn't release the appraisal to them, only to me. (which is contrary to what they said previously) Finally I called countrywide and demanded a written release of the appraisal. they responded with a one sentence email stating they released a copy to me, and therefore released the rights to the document. Meantime, my second lender was trying to get two more comparables added to the appraisal by talking to the guy who drafted the appraisal. he only responded once, stating that he couldn't add anything to the appraisal because it was done for countrywide. after we had obtained the email stating countrywide's release of interest, no response was obtained from the appraiser after a week and two days of emails and voice messages. Finally I was forced to order another appraisal from another company, incurring the expense again. My question is what is the rule on appraisal transfer rights? and was what I was asking for i.e. two more comparables, a big deal? what rights do I have here? Is there someplace that I can log a complaint? any help would be great. thanks!

 

[David Wimpelberg]

At this point I am not sure even if countrywide had assigned the appraisal to my new lender, he would have responded in time to meet our deadline to close.

Countrywide cannot assign the appraisal. The other lender could rely on that appraisal if they obtained a copy of it from Countrywide. The appraiser isn't involved in any of this.

Once the new lender starts tacking on new conditions, you are simply dealing with a new assignment, since these conditions were not part of the initial assignment. The appraiser is under no obligation to respond to any of this, since it is a new assignment. Obviously, the appraiser should respond out of professional courtesy is he/she is getting your messages.

 

[toddmallard]

Countrywide can not assign the appraisal to anyone. Your new company can not use this appraisal for its lending. Its for Countrywide only. I have had requests from 2nd mortgage companies to re-asign the the appraisal, I have told them that it unlawful for me to do that. They gave me lip about , Blah, Blah ,Blah, and at that point i would not talk to them anymore. Your second company might have shot off with the mouth to the appraiser and he has juat said screw them.
the appraiser has no responsibility to the new lender. You need a new appraisal. And thats that.

 

[toddmallard]

Did Countrywide change the clients name on the appraisl to your new lender? If so please let us know and we'll take care of Countrywide. You stated that they transfered it to your new lender, How?

 

[stefan olafson]

Kalli1582,

I'm sorry you got in the middle of this situation. In my opinion Counrtywide is not out for anyone other than coundrywide. Here's how this should work.

You apply to refinance your current loan, the lender requests an appraisal from a reputable appraiser. The appraisal is completed, if the value is there and your credit is good, the loan goes through. If the value isn't there the loan will progress no further. There is a cost for the appraisal and for the preliminary work done by Countrywide.

Countrywide uses an AMC (Appraisal Management Company) to order their appraisals. Their typical fee is considerably below what is industry standard in most locations, hence the appraiser who does do the appraisal is usually either young and inexperienced or has some other issues. This is where you get stung on these type of transactions. Countrywide is out to make a buck on the deal, they are going to use the appraiser who will work for the least amount of money, you weren't told that up front and I think you could probably go back to them and ask for a refund if you could prove negilegence on the appraisers part.

Now when you go to a new lender, because they are using the original appraisal, they have to use it like it is. It they need more comparable sales or some such nonsense, the correct way to do it is to order a new appraisal. Now usually the original appraiser, who has all the information in front of them, could provide you a new appraisal in short order, don't know why they didn't, it's simple as a new assignment for a new fee.

I hope the new lender is using a good quality appraiser, I wish I could say we are all equal, but that would be a total lie.

I hope that sheds some light on your situation.

Oly Olafson