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Where can I find....

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Chris Colston

Thread Starter
Elite Member
Joined
Jul 24, 2003
Professional Status
Certified Residential Appraiser
State
Florida
....any references that endorse CASH AT THE DOOR payments while retaining the lender as the client? I can prove in USPAP that who engages the appraiser IS the client, however, you know how judges are. They usually take the policy that who pays IS the client. I need something in writing, that looks and sounds official that I can present to the judge. Anybody?
 

Michael Tipton

Senior Member
Joined
Sep 25, 2005
Professional Status
Certified Residential Appraiser
State
Florida
Chris,
You should research banking regulations, not USPAP. An owner acquired appraisal is not permitted for use in a mortgage transaction by a financial institution.
The fee collected at the door was done as a convenience to the lender/client. USPAP will require the client be identified as part of the appraisal process. The request was placed by the broker, lender, etc.

2231.0.3 OBTAINING AN APPRAISAL
The banking organization or its agent is responsible
for engaging the appraiser and must have
sufficient time to analyze the appraisal as part of
its decision process to enter into the transaction.
(See the discussion below on the selection of an
appraiser.) A banking organization may not
accept an appraisal prepared for a potential borrower
as the appraisal for a federally related​
transaction.

http://www.federalreserve.gov/boarddocs/supmanual/bhc/200701/2000p7.pdf
 

Chris Colston

Thread Starter
Elite Member
Joined
Jul 24, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Michael,

None of that will convince a judge that the person who paid is NOT the client. I already have the judge agreeing with USPAP and other regulations where FRT is concerned. However, based on an "under breath" comment, I'm going to need something "official" sounding about why we take CASH AT THE DOOR from the borrower, while retaining the lender-appraiser client confidentiality relationship.
 

Michael Tipton

Senior Member
Joined
Sep 25, 2005
Professional Status
Certified Residential Appraiser
State
Florida
USPAP Statement 9 combined with 2231.0.3 is the best I can suggest.

I also make it my business practice not to release an appraisal without being paid except to clients I choose to extend credit.
 

Ken B

Elite Member
Joined
Feb 18, 2004
Professional Status
Certified General Appraiser
State
Florida
How about something from the clients themselves? Any engagement letters noting COD payment arrangements but clearly identifying that the lender is the client?
 

Chris Colston

Thread Starter
Elite Member
Joined
Jul 24, 2003
Professional Status
Certified Residential Appraiser
State
Florida
How about something from the clients themselves? Any engagement letters noting COD payment arrangements but clearly identifying that the lender is the client?

I have the appraisal order/request that states "Pick up check at door". Judge has already asked me what I "perceived" that to mean. When I told him, is when he mumbled something under his breath and then noted that he disagreed with the concept of that the one who paid is not the client.

Even though this is small claims court, I was wondering if there was anything, either in Federal regs or actual case law, that allows for anyone other than the client to pay and have the payee not be considered as a client.
 

Couch Potato

Elite Member
Joined
Mar 15, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
You might want to look at or reference an attorney paid to represent someone other than the person who wrote the check for the fee. It is the same situation. I paid an attorney to represent my nephew in a legal matter, that in no way made me the client of the attorney. The judge should be able to see the parallel.
 

Ken B

Elite Member
Joined
Feb 18, 2004
Professional Status
Certified General Appraiser
State
Florida
Sounds like you need to find legal precedence establishing that one who pays for a service is not necessarily the client. Anyone know a decent paralegal who could research it?
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
"I paid an attorney to represent my nephew in a legal matter, that in no way made me the client of the attorney. The judge should be able to see the parallel." I had a similar situation, I paid an attorney to represent my granddaughter in a legal matter, went to the attorney's office several times with her and discussed the situation with the attorney--but I could not discuss or ask questions at any other time because he was representing my granddaughter--not me even though I paid his fee.

2008 USPAP FAQ

http://commerce.appraisalfoundation.org/html/USPAP2008/FAQ/faq_69_.htm
 

Rick Kulman

Junior Member
Joined
Jan 31, 2003
Professional Status
Certified General Appraiser
State
New Jersey
Chris

As an adjunct to Michael Tipton's references, here are links tying the Florida Statutes to USPAP and the federal laws and rules

475.628 Professional standards for appraisers registered, licensed, or certified under this part.--Each appraiser registered, licensed, or certified under this part shall comply with the Uniform Standards of Professional Appraisal Practice. Statements on appraisal standards which may be issued for the purpose of clarification, interpretation, explanation, or elaboration through the Appraisal Foundation shall also be binding on any appraiser registered, licensed, or certified under this part.
History.--ss. 9, 11, ch. 91-89; s. 4, ch. 91-429; s. 35, ch. 98-250.

475.611 Definitions.--
(1) As used in this part, the term:
(a) "Appraisal" or "appraisal services" means the services provided by certified or licensed appraisers or registered trainee appraisers, and includes:
1. "Appraisal assignment" denotes an engagement for which a person is employed or retained to act, or could be perceived by third parties or the public as acting, as an agent or a disinterested third party in rendering an unbiased analysis, opinion, review, or conclusion relating to the nature, quality, value, or utility of specified interests in, or aspects of, identified real property.

l) "Federally related transaction" means any real estate-related financial transaction which a federal financial institutions regulatory agency or the Resolution Trust Corporation engages in, contracts for, or regulates, and which requires the services of a state-licensed or state-certified appraiser


475.612 Certification, licensure, or registration required.--
(1) A person may not use the title "certified real estate appraiser," "licensed real estate appraiser," or "registered trainee real estate appraiser," or any abbreviation or words to that effect, or issue an appraisal report, unless such person is certified, licensed, or registered by the department under this part. However, the work upon which an appraisal report is based may be performed by a person who is not a certified or licensed appraiser or registered trainee appraiser if the work is supervised and approved, and the report is signed, by a certified or licensed appraiser who has full responsibility for all requirements of the report and valuation service. Only a certified or licensed appraiser may issue an appraisal report and receive direct compensation for providing valuation services for the appraisal report. A registered trainee appraiser may only receive compensation for appraisal services from her or his authorized certified or licensed appraiser.

http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=Ch0475/ch0475.htm


Good Luck!

Rick
 
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