Change of lender, using valid Appraisal report (disclosure, mortgage, mortgage)

[jons_wifey]

Change of lender. Appraisal complete, report still valid, wanting to hand over to new lender BUT will I have to go to the first loan officer for HIM to submit the appraisal report to the NEW lender/loan officer? and CAN he deny my request?

[manderly6]

Probably want this in the mortgage forum. What type of loan is it?

[willow wind]

What kind of appraisal did you have done ? FHA, VA or conventional. FHA & VA appraisals are completely portable for six months from date of appraisal.

They can simply be transferred as they are to a new lender. There is some paperwork shuffle on the part of the new lender to request this from the original lender and some paper work shuffling on the other end. If you're dealing with competent lenders they should know how to do this. It's not that big a deal.

If you're dealing with a conventional loan, the original lender has to release the appraisal and let the appraiser know it has been released. Then the new lender has to contact the appraiser. At that point the appraiser has to establish a relationship with the new lender in order to re-submit the report to them. This is considered a new assignment for the appraiser. A letter of engagement from the lender should be enough. The appraiser may or may not want to resubmit the appraisal. If they do, expect an additional small fee for doing so.

Reasons why the appraiser may not want to submit the appraisal to a new lender. The new lender may have a whole slew of underwriting requirements that the appraiser does not want to deal with and which were not needed for the original lender. ( i.e too time consuming) . The appraiser may have had bad experiences with the new lender in the past - slow payment, no payment, etc.

Yes, it's all a PITA. However, the stacks of rules and regulations grow ever more burdensome as the months go by. However, if you need that appraisal, get started on the process today.

[jons_wifey]

USDA loan

[willow wind]

Will depend on lender then and if they will release and if new lender will accept. Many lenders won't take prior appraisals for USDA loans. If they do, then you have to deal with the appraiser. Depending on where you are in the process and the new lender you may have to requalify for the loan. They will have to re-underwrite the loan.

It also still will have to go to USDA for final approval. The whole process can set you back in time.

[Pfhtex]

You likely signed a disclosure acknowledging the fact that the appraisal is ONLY usable by the lender that ordered it. Dodd-Frank has made this newly difficult on consumers.

Did you pay for the appraisal?

[jons_wifey]

Yes appraisal has already been paid for.

[jons_wifey]

Loan has not yet gone into underwriting or USDA underwriting

[willow wind]

FHA & VA appraisal portability is not dependent upon Dodd-Frank. I will repeat- those two types of loans are fully portable as long as FHA/VA specific conditions are met.

Conventional loans can also be portable for that matter. Lenders, to keep themselves out of trouble, avoid any conflict of interest or appearing to manipulate the appraisal process are making their own regulations on appraisal portability. However, Dodd-Frank specifically permits portability.

Too many regulations and pieces of paper- just confuses everyone - the whole lending industry is twisting itself into a pretzel - lol

[jons_wifey]

Met with new lender today, they confirmed that they can use the appraisal that I paid for. Can the old lender be a jerk about it and not release it to the new lender?