Appraisal Retypes

CoolAngel · #1 11-02-2004, 11:10 AM

What is the name of your state?I'm from MA and I'm trying to refinance my home. My situation is this... Lender A took all of our information including what we thought our house was worth. They pre-approved us using that amount and then sent out an appraiser which I was told I would only pay for if approved. The appraisal came back too low and we were eventually denied the money. I was then told I could use my appraisal somewhere else. So I go to Lender B and they say they can use the appraisal amount to run numbers but will need to have the appraisal retyped. Here's the problem. Retypes are not legal according to my findings and the appraiser will not do one but will need to reappraise the house. I have already paid for one and do not want to pay for another especially since I was told I could use it. My question is... Does anyone know where I can find the law that states whether or not the Lender B has to accept the first appraisal? Or am I even allowed to use the first appraisal or does the law state that I have to have a new one? I would like to know which lender is right. Thanks!

FloridaRob · #2 11-02-2004, 02:43 PM

The appraiser is right. He can not just retype the new lenders name on teh appraisal and hand it over. He can lose his license or be severely reprimanded.

However, ask him how much he will charge to do a new appraisal. He could charge you $1.00 or he could charge you full price or somewhere in between. If you were satisifed with the first appraisal, get him to do a new one. Then get a copy of both of them. If it looks like all he did was change the lender client to the new lender and the date of the appraisal, then close your loan and let it fund, then call him up afterwards. Tell him that when you reviewed the new appraisal, it looked just like the old appraisal with a new date. Tell him unless he refunds you the cost of the new appraisal since he did not do anything, you will turn him into the state for doing exactly what he said he could not do.

Pretty sure you will get your money. As far as what law he violated, it is not really laws but rules the appraiser must follow which act the same way as laws do. Advisory opinion 26 and 27 of the 2004 USPAP for appraisers were his guidelines.

#3 11-02-2004, 05:17 PM

calif.
You should be up front and honest in your all your dealings with your lender. Would this be the ethical way of doing this? You would probably be far better off if you keep honest in everything. You could end up in court over something that could be dealt with now.

CoolAngel · #4 11-03-2004, 10:43 AM

I'm definitely being honest, I won't do a re-type if it's not legal. I guess the question is if the new lender is able to use the original appraisal. They are saying no but the first lender is saying they can. If the second really can't use the appraisal because of some law I can't find then I want my money back from the first lender.

MORTGAGEman · #5 11-03-2004, 12:25 PM

I've done this a couple of times because I'm in the Mortgage Business.

What you can do is call up the lender that you already got the appraisal through and ask them to send you the appriasal with an assignment letter stating that they are willing to give up the appriasal. Then what you do is go back to the appraiser and ask them to reasign the appraisal over to the new lending company.

It's not that big of a deal, the only problem that you might have is when you go and speak with the old lenders. The appriasal is definitely yours since you paid for it.

Some Mortgage companies will require a desk review though once the appraisal has been assigned to them.

Let me know if this helps.

Thanks,

Ciarraine · #6 11-03-2004, 04:26 PM

Quote:

Originally Posted by CoolAngel

I'm definitely being honest, I won't do a re-type if it's not legal. I guess the question is if the new lender is able to use the original appraisal. They are saying no but the first lender is saying they can. If the second really can't use the appraisal because of some law I can't find then I want my money back from the first lender.

The answer is yes, the appraisal can be assigned by the appraiser to another mortgage company. The first lender is right. "Retyping" it is illegal, re-using the data as a guide for a new appraisal is fine but still will cost you. Call the original appraiser and ask for it to be assigned to your new lender.

FloridaRob · #7 11-04-2004, 02:16 PM

sorry guys, the guidelines have changed for appraisers. AN APPRAISER CAN NOT REASSIGN AN APPRAISAL, even with a release from the first lender. Inf fact, the Appraisal Board looks at an appraiser requesting a release or discussing a release with 2nd lender a violation of the confidentiality agreement. He can not do it. Any appraiser that does it is in violation of USPAP standards. CHeck out advisory opinions 26 and 27. It just changed this year.

He has to do a new appraisal. Period. And MOrtgageman, it does not matter to the appraiser who paid for the appraisal. His client is all that matters and many times that differs from borrower, to seller, to lender. Who pays him is not signficant to who his client is....

MORTGAGEman · #8 11-04-2004, 03:01 PM

I just got off the phone with one of my appraisers and asked him this question. He said that in order for the appriasal to be legally transferred, the borrower has to request the appriasal to be reassignment from the previous lender. If the lender replies with an O.K.

Rob are you saying that this is not legal?

Because if that is the case everyone in Florida is wrong!

FloridaRob · #9 11-04-2004, 03:25 PM

mtgman. I just re read the guidelines. even discussing transferring an appraisal to anotehr company could be a violation of confidentiality. The guidelines have just changed in the past few months. It could be that your appraiser has not seen the change. I know it just came to my attention about 2 months ago.

tell your appraiser to look at teh communicator magazine issue 33 2004.

couple of overviews copied in part..

Same Property Different Client

1st question-Can I accept the order... According to USPAP the appraiser can accept the order.

2-do I have to notify the 1st client and do I have to request a release from them.

answ...notification is not required....in fact informing either client about the existence of other may not be compliant wtih Confidentiality Section of Ethics Rule

3-can I just re-type the original appraisal with the new clients name on it. (now I take this to mean recertify appraisal because basically you are just changing clients name)

answer...advisory opinion 26 emphaticaly states no...once a report has been prepared for a named client and any other intended users and for an indentified intended use, the appraiser cannot readdress (transfer) the report to another party..

FloridaRob · #10 11-04-2004, 03:34 PM

mtgman. a lot of appraisers still do that but they are wrong.

You know any Wells Fargo people from Lakeland?? I used to do a lot of work for them until they wanted to cut my fees by 1/3 or more. If I am going to work 65 hrs a week I want to at least do it at full fee.

CoolAngel · #11 11-04-2004, 03:38 PM

Now you guys know why I'm confused... I don't care about having a new appraisal but I don't feel I should have to pay again. If I hadn't paid for the first appraisal then I wouldn't even be questioning it. The first lender said that the new lender could use it with the first lender's name on it. I was otld it was my appraisal and could be used again.

MORTGAGEman · #12 11-04-2004, 03:43 PM

FLORIDARob... I think what you are thinking about is if the appraisal switches from "client to client" meaning the buyer.

What I think CoolAngel is saying transfer the appraisal from lender to lender.

FloridaRob · #13 11-04-2004, 03:43 PM

coolangel, at least call teh appraiser and ask him how much he will charge. Ask him since he just did it can he give you a price break. Unless he is a complete a$$ he should.

the lenders are wrong in telling you what the appraiser can do. Next time order the appraisal yourself. Do not ever let the lender order it. WHo pays for it does not dictate who the appraisers client is. Who or what company orders it does.....

FloridaRob · #14 11-04-2004, 03:46 PM

mtgman. the client is rarely the borrower/buyer... The client is 95% of the time the lender....borrower and client are rarely the same....

MORTGAGEman · #15 11-04-2004, 03:52 PM

Well I would find out from your current lender what he thinks you should do, because you've already spent money on getting an appraisal.

I didn't think that this issue would be this difficult. But since it brings up this many issues, I suggest doing what FLORIDARob says and ask the appraiser to cut you a break by doing another appraisal, because in most cases if you reassign an appraisal over to a large financing company they usually have to do a desk review to make sure the appraisal is legit anyways and that usually costs around $150 atleast in Florida.

Hope this helps,

Appraisal Retypes

thoughts