Who owns the residential appraisal? The appraisal is controlled or owned by the client/entity who orders the appraisal. In other words, the appraisal is controlled or owned by the client/entity who engaged the appraiser to perform the appraisal. If a mortgage lender, such as ABC Mortgage Company, ordered the appraisal, the mortgage lender owns the appraisal, even if you paid for it. If you ordered the the appraisal for non-lending purposes, such as a County Tax Dispute, then you own the appraisal.



Is it possible for the appraisal performed on my house two months ago for ABC Mortgage Company be transferred to another lender, Target Lending Group because they're offering me a better interest rate? The answer is No, the report can't be transferred. Target Lending Group will have to order a new appraisal. It's a new assignment and it's against USPAP (the Uniform Standards of Professional Appraisal Practice) for an appraiser to transfer an appraisal to another lender. However, in the case of Target Lending Group, they may be able to contact the original appraiser and get the second appraisal ordered and delivered for a reduced fee because it's an update appraisal. But, the appraiser must have a copy of a new appraisal order in their work file, drive back out to the home to make sure it's still there and use a current effective date in the report.

Further wording on appraiser's receipts include: Our report of the appraisal will be delivered only to our client. Under the Confidentiality section of the ETHICS RULE of the Uniform Standards of Professional Appraisal Practice we are under a strong obligation to our client, and may not discuss the results of the appraisal with others, or provide copies of the report to others, without written permission from our client.

Under 12 U.S.C.A. Section 1691(e), part of the federal Equal Credit Opportunity Act, a residential mortgage applicant has the right to receive a copy of the appraisal report from the lender. To receive the copy of the appraisal report, the borrower must request it in writing from the lender within ninety days of submitting the loan application.

This law applies to nearly all real estate secured residential mortgage lenders, including banks, S&Ls, credit unions, mortgage bankers, mortgage brokers, mortgage originators, etc.

The lender who ordered, accepted delivery and based a business decision on the appraisal is the appraiser's client, regardless of who paid for the appraisal, or when, or how. The appraiser must comply with the client confidentiality provisions of the Uniform Standards of Professional Appraisal Practice.

The appraiser has no obligation to discuss the appraisal with the borrower, or proposed borrower. The borrower is not the client. The appraiser must comply with the client confidentiality provisions of the Uniform Standards of Professional Appraisal Practice.

The appraiser may not reissue, retype, re-certify, update, transfer or otherwise pass an appraisal report prepared for one lender/client to another lender/client. The second, third, etc. lender/client needs to order a new appraisal. See AO3, AO25, AO26, and AO27 for additional information.

How can I receive a copy of my appraisal report ordered through a lender? It's my understanding that you have to request a copy in writing to your lender within 60 days of the date the appraisal was performed. By law, the appraiser is not allowed to send a copy of the appraisal report to a homeowner.

December, 1991 amendments to the federal Equal Credit Opportunity Act, known as 12 USCA Section 1691(e), require a lender to provide, on written request, a copy of the appraisal report to any person who applies for a residential mortgage.

The text of the section reads: "(e) Each creditor shall promptly furnish an applicant, upon written request by the applicant made within a reasonable period of time of the application, a copy of the appraisal report used in connection with the applicant's application for a loan that is or would have been secured by a lien on residential property. The creditor may require the applicant to reimburse the creditor for the cost of the appraisal.".

So, Rules promulgated by the Federal Financial Institutions Regulatory Agencies allow borrowers a 90 day period during which to file the written request for a copy of the appraisal. The lender must supply a copy, not the original appraisal report. The residential borrower, or potential borrower, must obtain the appraisal copy from the lender, not the appraiser. Only the residential borrower, or potential borrower, has a right to receive a copy of the appraisal from the lender. Sellers, brokers, and other parties who are not the borrower have no right to obtain a copy of the appraisal.