Who Gets A Copy?

[JoeGermade]

Ok so if the Client and the intended user of the report is bank "A", but the borrower payed for the report. THan who actually has rites to the copy of appraisal. I read posts on here stating that it is the lenders responsobiltiy to give a copy to the borrower. My mentor told me that if the homeowner purchased the appraisal than they have the rite to get a copy from you and not have to get it from the lender. Is there somewhere to read up more on this, a section of USPAP that has this topic in detail?

 

[Carnivore]

joe,

Think about getting a new mentor. This is fundmental stuff and he/she should already know the correct answer to your question.

for your info below is the link for USPAP 2005. I suggest you bookmark it, and then order a hard copy of USPAP for your personal use.

You as a trainee have as much responsibility for your training and education as your mentor. Use some personal initiative to improve yourself daily/weekley in your appraisal practice.

USPAP 2005 Link

good luck, keep asking questions here. We will all do what we can to steer you in the right direction.

 

[Thomas Fiehler]

Joe-The client relationship is established by who ordered the appraisal NOT who paid for the report. For a loan to be made, the report must be ordered by a lender and that makes them the client. The applicant should get a copy of the report at closing from the lender or title company. (I also would look for a new mentor!) B)

 

[Otis Key]

Here you go Joe:

Residential Borrowers May Receive Copy of Appraisal

December, 1991 amendments to the federal Equal Credit Opportunity Act, known as 12 USCA Section 1691(e), require a lender to provide, on written request, a copy of the appraisal report to any person who applies for a residential mortgage.
The text of the section reads: "(e) Each creditor shall promptly furnish an applicant, upon written request by the applicant made within a reasonable period of time of the application, a copy of the appraisal report used in connection with the applicant's application for a loan that is or would have been secured by a lien on residential property. The creditor may require the applicant to reimburse the creditor for the cost of the appraisal.".
Important Notes
• This law applies to nearly all real estate secured residential mortgage lenders, including banks, S&Ls, credit unions, mortgage bankers, mortgage brokers, mortgage originators, etc.
• Rules promulgated by the Federal Financial Institutions Regulatory Agencies allow borrowers a 90 day period during which to file the written request for a copy of the appraisal.
• The lender must supply a copy, not the original appraisal report.[/color]
• The residential borrower, or potential borrower, must obtain the appraisal copy from the lender, not the appraiser.
• Only the residential borrower, or potential borrower, has a right to receive a copy of the appraisal from the lender. Sellers, brokers, and other parties who are not the borrower have no right to obtain a copy of the appraisal.
• The lender who ordered, accepted delivery and based a business decision on the appraisal is the appraiser's client, regardless of who paid for the appraisal, or when, or how. The appraiser must comply with the client confidentiality provisions of the Uniform Standards of Professional Appraisal Practice.
• The appraiser has no obligation to discuss the appraisal with the borrower, or proposed borrower. The borrower is not the client. The appraiser must comply with the client confidentiality provisions of the Uniform Standards of Professional Appraisal Practice.
The appraiser may not reissue, retype, re-certify, update, transfer or otherwise pass an appraisal report prepared for one lender/client to another lender/client. The second, third, etc. lender/client needs to order a new appraisal. See AO3, AO25, AO26, and AO27 for additional information of USPAP ( http://www.appraisalfoundation.org ).

 

[Farm Gal]

joe:
Ya might want to do a leetle bit of reading... most states have adopted USPAP into State Law

Confidentiality (ETHICS RULE)
An appraiser must protect the confidential nature of the appraiser-client relationship. {snip}
An appraiser must be aware of, and comply with, all confidentiality and privacy laws and regulations applicable in an assignment*.

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; state enforcement agencies and such third parties as may be authorized by due process of law; and a duly authorized professional peer review committee except when such disclosure to a committee would violate applicable law or regulation. {snip}

Here is the link to the REST of the story which you might want to open and read:
2005 Uniform Standards of Professional Appraisal Practice
Current Edition of USPAP, effective 1/1/2005
USPAP 2005

 

[JoeGermade]

So wait.... your telling me that when I am doing my inspection I cant tell the borrower what I think there value is going to come in at?


Ok, Ok.... calm down im just kidding.... you guys are so rough on this site, but I do appreciate the help. I see what USPAP says its just hard to understand. The fact that someone is handing you $300 and you give them a reciept that most of the time states that "they have purchased an appraisal" in some way. Really they have purchased the rite of a lender to use there money for an appraisal on there home which they can choose to give a copy of or not.

What Otis pointed out was exactly what I was looking for.

As for my mentor thats another story, I dont think there are many mentors where im from. I wish I could have found one.

Thanks for all the help guys. Im gonna make sure I have a copy of USPAP on my coffe table and another in my magazine rack in the bathroom.

 

[Paul Ness MAI]

Joe, you got all that? The appraiser must only provide his appraisal to his client (the bank), then the bank has an obligation under the Equal Credit Act to provide a copy to the borrower, but you must NOT give the report to anyone other than the bank that engaged you. You can't even tell anyone else the value.

 

[Farm Gal]

Originally posted by joe germade@Mar 16 2005, 02:38 PM
The fact that someone is handing you $300 and you give them a reciept that most of the time states that "they have purchased an appraisal" in some

Joe:

Don't DO that...

Hand them a receipt that says you have accepted payment in zzz amount, from the homeowner, on behalf of the lender who is your cleint!

The receipt I hand out says that I can't give them a copy of the report, and that the lender MUST give them a copy, if (and ONLY if) they make that request of the lender within 90 days.

 

[Ross (CO)]

joe,.......I always cross that bridge of the property owner's clear understanding that.......THEY are making payment to me upon those arrangements established and PREFERRED by MY client, XYZ Lending, as you are aware. (They agree with that 98% of the time). I then state that.......Federal law does not allow ME to be that party providing you a copy of the report, but it is however the obligation of XYZ Lending to do that FOR you, after I have sent the report to them first. Also know, that YOU may have to ask them directly as this is not always automatically done. Do not let it go beyond 30 to 60 days as many start to archive their files when loans are completed. (They all say...O.K.) I end by asking if THEY prefer to pay in cash, with a money order, or will that be a check written on a LOCAL bank or credit union in THIS city ? (They clarify which method)

I really do not care if they ever get a copy of the report. Is that a mean thing to say ?

In the interior space of my clipboard I have several copies of my State Board's letter to use, to give a paying property owner, to explain the formal ruling on this sometimes sensitive issue. Those pages are getting kind of stale in there by now. I gave out several in my first months in the business, and I'm approaching 7 years now. You CAN set the stage to deflect these issues during your appointment setting process !

 

[Farm Gal]

Ross:

Specific time limit~

Federal law states that if the applicant makes the request within 90 days of loan closure or denial (whichever) ... that the borrower MUST receive a copy from the lender with whom they filed the application.

:blink: Spouse just did a little research... Lo and behold . In MY state the borrower actually OWNS the appraisal per state law . Interesting. This may form the basis for a right to file a mechanics lein on the property of anyoen doing a refinance transaction - We will have to do a leetle more research n this matter.

Might just solve some 'issues' since Mechanics leins get paid before bankers mortgages :twisted: