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Who's the client

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John Stirling

Freshman Member
Joined
Nov 10, 2002
I have just had several calls from a Lender who says they can't close their loan as I didn't put only their name on the client line of the URAR. I got this assignment from VIT. I usually put VIT/Clients name on the line. The client says this can not be, I say that VIT is my client and I would be in violation of USPAP if I don't put their name on the line. Am I right? :evil:
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
From USPAP

CLIENT: the party or parties who engage an appraiser (by employment or contract) in a specific assignment.

Comment: The client identified by the appraiser in an appraisal, appraisal review, or appraisal consulting assignment (or in the assignment workfile) is the party or parties with whom the appraiser has an appraiser-client relationship in the related assignment, and may be an individual, group, or entity.

 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
By VIT do you ValueIT out of Bloomington MN? They are an appraisal management company, therefore they were the messenger between you and the actual client. The client would be actually Wells Fargo for example, not ValueIT. An appraisal management company is similar to a secretary calling an appraiser for her/his boss; that boss is the client, not the secretary. If you feel uncomfortable only naming the actual client, you could put a statement in your report that the AMC was the intermediary between you and the client or a slash after the actual client's name and type in the AMCs name.
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
From AO-10

Response to Question 1:


Does an appraiser have an obligation under the Uniform Standards of Professional Appraisal Practice (USPAP) to ensure that his or her services are directly engaged by a regulated institution?

Before the appraiser accepts an assignment knowing the intended use of the appraisal is for a mortgage loan from a federally regulated institution, it is the appraiser’s responsibility to disclose to the prospective client that the lender or its agent is required to directly engage the appraiser. If the client still wishes to order the appraisal after this disclosure, the appraiser should inform the client of the implications of Question 2.

The AMC would be the agent for the client.
 

Red Blumenstock

Sophomore Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Florida
Sorry to disagree with you Jo Ann, but two years ago at the Instructors and Regulators update in Maryland, Laurie Van Court (then VP of the ASB) stated that we must ask the AMC who the client is and if they refuse to give us that information, we should decline the assignment. It was her opinion that the AMC was the client unless this information was given. I can see where the lender would be an intended user and could be listed as such, but this is a "sticky wicket".
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
In the situation I was talking about, the actual client's name and address is provided by the appraisal management company. That is the name and address that I put on the report as the client, as the appraisal management company placed the order at the request of the original client. Occasionally I will add the appraisal management company's name. And if I understand the new law in Illinois that would be required. The purpose and intended use of the report is for lending purposes to be used by XYZ bank--the appraisal management company was the secretary that made the phone call that ordered the appraisal. The appraisal management company does not have a purpose for the report being prepared and will not be using the report. They are only acting like a "post office" that delivers an appraisal report from point A to point B. If an appraisal management company ordered an appraisal and did not provide any information for another company or entity, then the client that would be listed in the report would be the appraisal management company. If an appraisal management company ordered a report without providing a client's name and address, I would start asking questions because that would be something out of the norm.

Is there a FAQ regarding appraisal management companies that has been published in the past on the Appraisal Foundation website?
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Most of the time the appraisal management company (AMC) IS NOT the client! The same problem is occuring with appraisers who insist on putting the home owner on the client line because they paid for the appraisal at the door.

The client is the "intended user" of the appraisal. Most of the orders I receive from AMCs identify the client.
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
Washington State says that the client is who orders the appraisers. You can add a client to the client line but you must still put who orders it. IE Value It/Wells Fargo. That is what they stated.

Ryan
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Interesting thread when one thinks about this for awhile... Many of you violate USPAP without realizing it. Here is how:

Lender orders appraisal, the Client is them 'ABC Mortgage Banker', then underwriter from 'DEF Mortgage Bank' calls and wants clarification on why you said something in the report.

Heres the question you must answer: Did you receive an assignement letter from ABC Mortgage Banker or did you receive written permission to discuss contents of appraisal with NEW Lender.
This may seem like a technicallity but that is what the thread is all about.

Comments? Am I wrong? If so, how?
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Order from ABC Appraisal Management Company acting as an agent for XYZ Mortgage Company. Since XYZ has hired ABC to be their agent, all questions, comments, requests, etc has to go through ABC although the purpose and use of the report is for the client XYZ. That is part of the service ABC is selling to XYZ, that ABC will handle the problems. Just as an appraiser deals with the secretary of the DEF First National Bank and not the president that oversees 267 banks in the state. In the original posting that started this thread (assuming VIT meant Value IT) the appraiser only discusses and communicates with Value IT--although Wells Fargo (again assuming that Value IT is involved and they are the AMC for Wells Fargo) is the client (with notations about Value IT if your state requires it). If anyone from Wells Fargo contacts the appraiser, the appraiser cannot answer any questions without permission from Value IT. The underwriter has to pose their question to Value IT, Value IT either has the answer or contacts the appraiser for the answer. The appraiser gives the answer to Value IT, who then passes it on to Wells Fargo. Occasionally Value IT will provide written permission to the appraiser to contact Wells Fargo directly, then the appraiser can communicate directly with Wells Fargo. But if Value IT does not provide that written permission there cannot be direct communication between the appraiser and the client. Just like that secretary for the president of the 267 banks won't let you talk to the president.
 
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