To The Homeowner/Borrower:
Thank you for the privilege of allowing me to visit your home for appraisal inspection purposes. Here
is some information you need to know:
Delivery of Appraisal Report
The appraisal report will be delivered only to my client who is your lender. Under the Confidentiality section of the
ETHICS RULE of the Uniform Standards of Professional Appraisal Practice (USPAP),
I am under a strong obligation to my client, and may not discuss the results of the appraisal with others, or
provide copies of the report to others, including the homeowner/borrower.
Residential Borrowers May Receive Copy of Appraisal
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".
This law applies to all real estate secured residential mortgage lenders, including banks, S&Ls, credit unions,
mortgage bankers, mortgage brokers, mortgage originators, etc.
Important Notes
The following is mandated under the Federal Uniform Standards of Professional Appraisal Standards (USPAP) by
which all Real Estate appraisers are governed.
- 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. The appraiser can only
deliver a copy of the appraisal report to the lender.
- 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.
- 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 is under obligation to not discuss the appraisal, including value, with the homeowner and/or
proposed borrower. The only discussion the appraiser is allowed is in gathering information to assist in the
preparation of the appraisal. The borrower is not the client. The appraiser is only allowed (by law) to
discuss the appraisal with the lender/client named on the appraisal order form. The appraiser must comply
with the client confidentiality provisions of the Uniform Standards of Professional Appraisal Practice.
- The purpose, intended use, client and scope will be clearly spelled out in the appraisal sent to the client. No
other intended use, client or purpose can be applied to the appraisal report. In fact, the use of that report
by any person or entity for any other purpose, client or reason is satisfactory reason for the appraisal
report and analysis to be considered null and void. No one can rely upon the appraisal report for any other
purpose or use that is different from that stated in the report.
- 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, party, person or entity. A new lender requires a
new appraisal order, as defined by the current interpretation of USPAP.