| Before an appraiser accepts an assignment knowing the intended use of the appraisal is, or may be, for a federally related transaction by a federally insured depository institution, it is that appraiser’s responsibility to disclose to the prospective client that the lender or its agent is required to directly engage the appraiser. The appraiser should also disclose to the prospective client that it is unethical for the appraiser to later "readdress" or otherwise change the report to indicate a federally insured depository institution was the client when the appraisal was performed for another party (see AO-26 titled "Readdressing [Transferring] a Report to Another Party" and AO-27 titled "Appraising the Same Property for Another Client" for related advice on this issue). If the client still wishes to proceed with the appraisal after the appraiser has properly fulfilled these disclosure obligations, the appraiser can accept the assignment. It would be prudent to recite disclosures in the engagement letter and in the report. (Also refer to SMT-9 for additional information relating to intended use and intended users). |
