Appraiser Information

Vermont Mortgage Bankers Association

Appraiser Committee: join us! We have your best interests in mind.

Contact the VMBA at info@vermontmba.com.

Appraisal Standards at the Appraisal Foundation

2004 USPAP Advisory Opinion 26: Readdressing (Transferring) a Report to Another Party

2004 USPAP Advisory Opinion 27: Appraising the Same Property for a New Client

Clarification regarding appraisal assignments, updates and more.

If an appraisal is done for Lender A and the borrower then goes to Lender B my understanding is that Lender B can still use the appraisal even without their name on the report as the client. Assuming this is true, can we send Lender B a copy of the report with Lender A's approval or does a new appraisal need to be completed?

Is it true that if Lender B asks for their name to be written into the report as the client, or if the date changes, then a new appraisal must be completed?

Response by Alan Simmons, a qualified USPAP instructor:

Under FIRREA, lender B could use the appraisal for loan purposes, even with Lender A's name. Most lenders don't realize this and will argue. Also, many want to have their name on it to establish whatever comfort or benefits it might give them under the appraiser-client relationship.

If lender B already has a copy or lender A sends them a copy and wants to use it; that is beyond your control. Although, they were not an intended user and you may have stipulated in limiting conditions that it could only be used for the intended use and by the intended user for the purpose stated in the report.

If you are asked to send a copy to Lender B, knowing they intend to use it for their purposes. I would think you would have to consider it a new assignment. You could have a very small scope of work, but it would entail at least changing the intended user, and perhaps the intended use and purpose.

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Last modified: February 03, 2004