Can an Appraisal be Readdressed or Transferred to a Second Lender?

I got this question from a client this week so I thought I would share it with everyone.  This question comes up a lot when homeowners get an appraisal on their home, decide not to go with the initial lender the appraisal was done for, and want to transfer it to another mortgage company or bank.  These types of issues are addressed under the “Uniform Standards of  Professional Appraisal Practice” or USPAP.  According to USPAP this is not allowed.USPAP

Whenever an appraiser takes an assignment from a client the appraisal is customized to their needs, so when the client changes these needs may be different for the new client.  The Scope of  Work, Intended Use, and Intended User may be different.  The correct way to handle this situation is to accept a new appraisal assignment from the new client.  A lot of the appraisal report will be the same, however some things may not be.  As you can see, it is not just a simple matter of retyping a name and emailing the report.  It should be noted that a lending institution is able to use the appraisal report with the other lenders name, however they do not usually wish to do so because there would be no legally binding relationship between them and the appraiser since their name is not on  the report.  I hope this information is helpful.  If you have any similar questions that you need answered please do not hesitate to call me at 205-243-9304.


  1. Good points, Tom. You are right on.

  2. I need to post this to my blog about once a week!

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