We are often asked if we can change a lender or mortgage company's
name on an appraisal report and re-send it to a new lender or mortgage company.
Below is the reasoning behind our company’s decision to NOT comply with
requests to perform a re-type appraisal. For our company to change the name
of the lender on an appraisal report it constitutes a new appraisal and implies
all the requirements of a new appraisal.
* The retyping or readdressing of an appraisal is illegal.
* Changing the client’s name on a completed and delivered appraisal,
* Any lending institution can use an appraisal that was created for another
* There is no need for a lender or mortgage institution to ask for a re-type
or re-addressing of an appraisal from one lender or mortgage broker to another.
Per the laws of FIRREA (Financial Institutions Recovery, Reform, and Enforcement
Act of 1989), re-types of appraisals or the re-addressing of an appraisal to
a different user or client is not allowed under State and Federal Laws. Over
the past decade, numerous lenders and mortgage brokers have not followed this
law and as a course of daily business, regularly demanded that appraisers to
perform re-types. Ignorant or unethical appraisers have blindly followed the
wishes and demands of their client hoping to secure future business.
The FIRREA laws and the Uniform Standards of Professional Practice (USPAP),
along with Federal and State Laws do allow appraisal reports that have been
created for one lender or mortgage broker to be utilized by a different lender.
Per FIRREA and USPAP laws, charging the new client a second, or additional,
fee for a new appraisal is a business decision on the part of the appraiser.
Considering the appraiser is now responsible for providing expertise to another
party, thereby essentially doubling his or her liability, the additional compensation
is justified. It is up to the lender should they choose to pass that charge
along to the borrower.
Lenders/Brokers can request a new appraisal, by the same appraiser, on the same
property. The new appraisal may, or may not, be performed at a discounted fee
to the new user and is solely up to the decision of Value Appraisal, Inc. and
on a case-by-case basis. We understand that the appraisal is performed under
the borrower’s name, but it is NOT the property of the borrower, only
the company who had ordered the appraisal request unless done so directly by
the borrower for private use.