REASSIGNMENT OF APPRAISAL

Per USPAP, when an appraisal order is placed, a relationship is created between the parties involved. The client is identified by the appraiser in the appraisal report and is the party with whom the appraiser has an appraiser-client relationship in the related assignment. Once a report has been prepared for a named client, the appraiser cannot be “readdressed” to another party since the appraiser does not have a contractual relationship with this other party. However, an appraiser may complete a NEW assignment for this second party. This will then establish a relationship between appraiser and second lender providing all of the rights, obligations and liabilities such a relationship places on the parties involved. A new scope of work is required and an associated fee is determined.

Appraisal Portability

Appraisal portability provides that a lender may accept an appraisal prepared by an appraiser for a different lender provided the lender (1) obtains written assurances that such other lender follows appraiser independence guidelines in connection with the loan being originated and (2) determines that such appraisal conforms to its requirements for appraisals and is otherwise acceptable.  The originating lender is responsible for documenting the written assurance to the other lender.  The lender accepting the appraisal report completed for the originating lender must accept the report “as is.”  The appraiser has no contractual relationship with the second lender and is not responsible for changes requested by the second lender.