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Too Late for a Reconsideration of Value

Q: I prepared a VA refinance appraisal in May of 2020. More than a year and a half later I received a request for reconsideration from the veteran/borrower. My value was $318,000. He said the following:

"Prior to your appraisal, I had a brief conversation with a realtor living in the area who gave an "off the cuff" appraisal of “about $340,000." I assumed her professional opinion would be at least generally accurate even if it were off by $5,000 or so. I was quite surprised then, when your appraisal of the home came in at $318,000."

He then went on to discuss 4 other sales that he thought were better comps then the ones I used. All of his sales had superior golf/fairway views, had been completely remodeled, were in superior condition, etc. If he had notified the lender at the time of the report, I could have prepared a Reconsideration of Value. There is nothing I can do now. I propose sending the following response and would like your thoughts:

" Due to confidentiality rules under USPAP (Uniform Standards of Professional Appraisal Practice), I cannot discuss or disclose anything regarding the appraisal with anyone other than the Lender/Client (XXXX Financial, LLC and The Department of Veterans Affairs). If you have any questions or concerns, please contact your lender, as there is an established protocol where the Lender/Client can address concerns while maintaining regulatory compliance. The appraisal report was created specifically for the Lender/Client (XXXX Financial, LLC and The Department of Veterans Affairs) who are the only Intended Users. Thank you. "

A: I have to agree that this is all you can do at this point in time. Who knows what motivated the borrower to contact you after all this time and there is no point in speculating. Unfortunately, your response might not make him happy and there is a possibility he might make a complaint to the state licensing board, so be on the lookout, and notify your carrier if you do receive notice of a complaint.


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