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Just wanted some feedback on this...what do you do if you can't make a loan for a client and he wants you to re-assign his appraisal somewhere else and has paid for it? I'm working with a difficult broker that won't let go of it...
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appraisers are not allowed any longer to re-issue under a new company name. with out completing a ne wappraisal
Art, I'm aware of that but lenders are still accepting appraisals done for other companies so long as they are assigned...
I would assign it all day long, If I am not getting the loan it's because they think they are getting a better deal. If I loose the current deal I don't want to loose out on an opportunity to write the next one. Unfortunately a lot of LO's can't afford to loose a deal so they will do whatever thay can to close a loan.
Most of the lenders I work with, want a new appraisal. We all know that this is usually nothing more than a quick re-write for the new lender depending on the age of the appraisal. In my area, the appraisers want to charge a full fee all over again for changing nothing but the cover page and quickly confirming comps but occasionally they do the right thing and charge a small fee fo the re-write.
Regardless, I would happily give a copy to the homeowner so that the new lender could contact the appraiser for a re-write. When giving it the customer, I would also include a sorry we could not do business note, and a coupon to refund the cost of the appraisal if they come back to me and close the loan.
The demographics in my area is about 90% blue collar workers. They often get suckered into low ball GFE's. If I resist, and refuse to give them the appraisal, I have lost them totally. If I give them the appraisal, I include some third party articles about low ball offers and I include a coupon for the free appraisal. This usually gets them to come back my way.
Occasionally they close the loan with the other lender and I get a call from them telling me about the bait and switch low ball offer. This usually means I can count on their future business and lot's of referrals.
What would you do if the other lender would not hand over the appraisal after about 10 days of harrassment? I have called, the client has called, and the appraiser is calling, and he is avoiding all of us. His email is full and sending back messages.
If the borrower paid for it then it is his, contact the apprasier and inform him and he will charge you a fee to change the name, maybe a hundred bucks to do so, thats the best way, the apprasier has a copy so all he needs to do is make the change and you can tell this clown that your client is reporting him to the commission of banks.
I charge the appraisal fee upfront (application fee). If the deal closes, they receive a credit towards total closing costs. If the deal doesn't close, I keep the $300 and mail the client the appraisal. They've paid for it, they can have it. They can do with it as they wish.
When I can ever get him on the phone I'll be sure to tell him that...
ELender, personally I'd never release an appraisal to another lender. As the appraisal states, it is intended only for the lender who ordered it. However, I have no problem giving it to the person who ordered and paid for it. If I were you, I'd tell the client that since they paid for it, they are entitled to it and that they should request a copy from the prior lender. I'd think they have a better chance of obtaining a copy than you do. The other lender is in no position to care about your needs and is probably bitter because of losing the deal. Once the client gives you a copy, have it "recertified" by one of your approved appraisers (usually +/- $100) and you should be good to go.
Elender, I am truly sorry to say but if you don’t know and have not had the proper training or adequate supervision to know what to do in this situation by now ……oooooh’ I just found out your with Countrywide, no wonder. “Just ask Angelo Mozilo, your orange man he knows”. So I guess your “client” is how do you say it “going out of the pan and into the fryer” or something like that. Poor client, he’s really going to get a working.
Saeedqome, I was just trying to find out different broker's policies on how they handle appraisals if one of their clients wants to change to another lender. As you can see by the responses everyone handles them different. You don't know how my clients are handled so please don't speak about something you have no knowledge of...
""please don't speak about something you have no knowledge of...""
When did that become policy here, seems to be encouraged.....
Agreed...how are things out in the mountains these days?
Flippin cold bro...was like -24 in Gunnison this morning....more like 8 degrees on the front range where we are but still......
Maybe if i could get a couple of these deals thru escrow it would make me feel all warm inside.....
It is supposed to hit 19 here tonight. That's really cold for sunny Florida. I don't know about the rest of you guys but I haven't seen an easy loan in a few months. Every one of them has had some twist or turn to deal with. I had one almost blow up on me the other day due to an ex-wife trying to redo her marital settlement with our closing.
Here is a link to my States Website: http://www.ncappraisalboard.org/bulletins/Aug06.pdf
On page five is a good explanation of releasing appraisal reports. Also, go to my website at
www.valuation-expert.com and click the link "market data search", and you will find other appraisal information about this subject.
USPAP states: "Once a report has been prepared for a named client(s) and any other identified intended users and for an identified intended use, the appraiser cannot "readdress" (transfer) the report to another party."
Regardless of who pays for the appraisal, the lender is the client stated on the report, however, I believe the borrower has a lawful right to a copy of the report.
If the report was written on a fannie mae form such as a 1004 (URAR), then you might want to read the appraiser's certification page #23 which states: "The borrower, another lender at the request of the borrower, the mortgagee or its successors and assigns, mortgage insurers, government sponsored enterprises, and other secondary market participants may rely on this appraisal report as part of any mortgage finance transaction that involves any one or more of these parties."
In short, the appraiser cannot simply readdress the report, however, I believe the borrower has a legal right to a copy of the report. The report can be given to another lender without readdressing it because of certification #23.
I hope this helps.
Did you read the page five of the link that I provided?
1. Lenders are required by federal law (Equal Credit Opportunity Act) to furnish a copy of the appraisal to the borrower if the borrower requests a copy in writing.
2. USPAP defines the client as "the party or parties who engaged an appraiser (by employment or contract) in a specific assignment."
3. For a federally related transaction, federal law requires the lender to be the one to engage the appraisers services.
4. The appraiser cannot give a copy of the of the report to the borrower without the lenders consent.
5. Don't get me started on Cert. 23. For some bedtime reading, here you go (please print page five of my other link, really good info for all)
USPAP on Cert. 23
Fannie Mae Comments on Cert.23
Again, these and other links on appraisal issues can be found at www.valuation-expert.com
Thats good stuff Steve, thanks.
You are absolutley right, the appraiser cannot release the report to anyone except for the client. The client being the lender. The borrower must obtain the report from the lender.
As for certification #23, which states: "another lender at the request of the borrower" may rely on the report. I have always understood that as long as the intended use and scope of work is unchanged, then another lender may rely on the report even though they are not named as the intended user.
My issue was about the other lender not even giving a copy to the borrower when it was requested.
As Steve have noted, lenders are required by federal law under the equal credit opportunity act, to furnish a copy to the borrower. The borrower may have to request it in writting. If that doesn't work I would have the borrower's attorney wright a nasty letter to that lender.
By law the appraisal is the homeowners. Tell the homeowner to asked the broker for a copy. If he does not provide the borrower with a copy the borrower should notify the state.
By law the appraisal is NOT the homeowners it belongs to the lender. A homeowner has a right to a copy of the appraisal, but they do not own the appraisal regardless of who paid for it. It belongs to the lender.
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