Would you accept this LOE?

[Overimprovement]

If this were an issue, wouldn't every loan purchased by another lender automatically be in violation of banking regs by not having an appraisal on file for that collateral?

 

[CANative]

I laugh when guys say they won't do work for say the mighty Chaser bank or Wells-Cargo because 70% of the time the original lender funded it and then sells it the next week to one of the larger banks and then to Fannie or Freddie and teh appraiser never even knows. -

You post as if I (and others) don't understand this.

I can't control what "they" do with my work product AFTER I send it. If there is no explicit statement that they regarding other unidentified clients or intended users, then it's logical to assume no other clients or IDENTIFIED intended users.

"If Bank A sells all or a portion of this credit to another bank(s), said bank(s) shall be considered a part of the client(s)/intended user(s) of the Appraisal. "

This states that I AGREE to making mystery clients and unidentified intended users my client and an intended user. It would be irresponsible for an appraiser to do that because we did not make the appraisal based on THEIR particular needs. It also gives them additional rights and access to confidential information (if any) and assignment results.

 

[Highlight17]

USPAP addresses the appraiser's intended users, not the client's. Having said that, intended user(s) may be identified by type. So, there is no real USPAP challenge; it is a business decision.

I think USPAP establishes what is a "Client" is via the reported definition of such (line 102), and as such, this assignment condition is unacceptable as it violates USPAP (a Client must be the party or parties which engage the appraiser, a Client cannot be some future TBD party....

 

[DWiley]

.. a Client cannot be some future TBD party....

Good point. The exact wording that was posted is somewhat vague. What does client/intended user mean? The meaning of the "/" is not clear. Does it mean "and" or does it mean "or"??

If it means that the future lender(s) must be recognized as a client, that is problematic. However, if they only have to be an intended user, that is not an issue, because they could have been identified (by type) from the beginning.

 

[glenn walker]

You post as if I (and others) don't understand this.

I can't control what "they" do with my work product AFTER I send it. If there is no explicit statement that they regarding other unidentified clients or intended users, then it's logical to assume no other clients or IDENTIFIED intended users.

"If Bank A sells all or a portion of this credit to another bank(s), said bank(s) shall be considered a part of the client(s)/intended user(s) of the Appraisal. "

This states that I AGREE to making mystery clients and unidentified intended users my client and an intended user. It would be irresponsible for an appraiser to do that because we did not make the appraisal based on THEIR particular needs. It also gives them additional rights and access to confidential information (if any) and assignment results.

So what is your point ?If they sell that to Fannie Mae -do you think you are not in the game ?

 

[CANative]

So what is your point ?If they sell that to Fannie Mae -do you think you are not in the game ?

As I said from the start, as I said it again, as Highlight re-stated the same thing which got a "Good Point" from DW (but not for me ) ... "a Client cannot be some future TBD party.... "

 

[Tim The Enchanter]

This is another of those Seinfeld threads.
It's about nothing.

 

[Tom4value]

I was reading an Appraisal Report and when reading the LOE (AMC engagement letter) I ran across a comment that an Appraiser is agreeing to if they accept the assignment.

Do you consider the following statement to be an issue in acceptance of the assignment? Why or why not?

If Bank A sells all or a portion of this credit to another bank(s), said bank(s) shall be considered a part of the client(s)/intended user(s) of the Appraisal.

It is fine. Cert 21 of the URAR states this, anyway.
I think your concern is that you may have a new client without your knowledge and more stips down the road. No need to worry. You do NOT get a new client. There may be another intended user that you, the appraiser, do not know about but intended users have no say and are not authorized to demand changes to the appraisal.

 

[Tom D]

these loans are always bulk sold with the big bank. they are talking post closing. if post closing calls you it may be a mistake you made on the original report. most of the time that appraisal will disappear into the closing void. if they call , just remember, is there a problem with my appraisal that i need to correct, cause they can send you to the state. there is no other reason they will bother you. the original lender is giving you permission.

 

[CANative]

Is anything bad going to come out of agreeing to future intended users? Probably not.

Is that the point of this discussion? No.