Valuation Management Group, as part of our appraisal management services, strives to advise our clients and appraisers on common appraisal related issues. A request that we receive very often is to “Change the Client/Lender Name on the Appraisal Report.” The Client and Intended User cannot be changed on the appraisal without it being considered a new assignment. When the Intended Use is changed this also becomes a new assignment. Other common questions are as follows, “Should the effective date of the appraisal need to be revised would this be a new assignment?” and “Why does it have to be considered a new appraisal assignment?” The Scope of Work Rule in USPAP governs the assignment elements the appraiser must consider.
The Scope of Work Rule lists 6 assignment elements. If any of the assignment elements change then a new appraisal assignment is required. The assignment elements are Client & Intended Users, Intended Use, Type and Definition of Value, Effective Date, Subject of the Assignment and its Relevant Characteristics, and Assignment Conditions.
Another example would be when an appraisal was completed subject to plans and specifications. The appraisal was completed and later the borrower decides to change the plans and/or specifications. This would be considered a new assignment as the information for the proposed dwelling has changed.
We are often provided with contract amendments to the sale price and/or seller paid concessions, a request to add a loan number, or additional information such as support for adjustments or a comparable are requested. These requests would not be considered a new appraisal assignment. A revision request can be made to the appraiser for these items.
Another situation that occurs is a sale after the effective date of the appraisal that the client would like to be considered as a comparable in the original appraisal report. In this case, the appraisal must have a new effective date for the sale to be utilized as a comparable since all comparable sale dates must be prior to the effective date of the appraisal; therefore, it becomes a new appraisal assignment.
If you ever are unsure if the request should be considered a “New Assignment,” please contact Natalie Thompson, VP of Residential Quality Assurance Reviewer for assistance.
Valuation Management Group will contact appraisers to determine a fee for the new assignment. In many instances, the appraiser will accept the new assignment at a fee less than the original fee for the first appraisal, since there is usually less time involved to complete the new appraisal assignment.
Valuation Management Group is a national, full service appraisal management service company that manages the appraisal process for financial institutions, banks, mortgage bankers, and credit unions. We offer the full array of commercial and residential appraisal products and services. We take the appraisal process from ordinary to extraordinary.