Petition Opposing Coercive & Abusive Behavior Against Appraisers
Petition Opposing Coercive and Abusive Behavior of Chase Bank and Other Lenders Against Appraisers
Please consider signing the online petition launched by John Dingeman opposing the coercive and abusive behavior of Chase Bank and other lenders against appraisers.
Stop Intimidating, Threatening, and Bullying Appraisers
Chase Mortgage Banking, like other financial institutions have come into possession of appraisals where a loan has been assigned or sold to them. If Chase had any issues with these appraisals during the underwriting process when the loans were written, they would have asked the appraiser’s “Client” for clarification, explanations, and/or corrections.
With every foreclosure, Chase Bank is scrubbing each and every one of the appraisals in an attempt to place blame on a loan gone bad on someone else, instead of acknowledging their culpability in greed. Chase Bank is sending out non-registered mail and alleging that USPAP (Uniform Standards of Professional Appraisal Practice) violations occurred and are asking the appraiser to reconcile the violations, explain their appraisal methodology, and discuss with them the value conclusion. If the appraiser does not comply, Chase Bank is threatening the appraiser with placement on their Ineligible Appraiser List and a formal complaint to the respective appraisal board.
The appraiser (Chase Bank is fully aware of this fact) cannot legally comply with their request because Chase Bank is not the “Client” in most cases. They have simply been assigned the loan from another lender/bank or sold to by a mortgage broker.
Confidentiality is NOT limited to the Appraiser-Client relationship. By numerous laws and regulations, including USPAP, it also includes ALL information that is not “public.” The value along with adjustments and descriptions of the house (that is not part of the public record) are confidential and cannot be disclosed to others, including people or companies in possession of the appraisal. This information can be disclosed to the “Client” only but not others.
Just because a Client “Assigns” an appraisal to others, does not change the Appraiser-Client relationship. Assigning the loan file or appraisal to another, like Fannie Mae, only changes things for the lender; nothing has changed the Appraiser-Client relationship.
The appraiser does not have the option of talking to “some lender, like Chase, down the line” or not. The law is very clear; the appraiser can only communicate private information with the Client. Complying with Chase’s coercive request would violate the Gramm–Leach–Bliley Act, the Confidentiality section of the ETHICS RULE in USPAP, and in many cases state law (Arizona Revised Statute 32-3631, Paragraph A.10).
So Chase puts the appraiser in a precarious position. Violate the law and comply or follow the law and suffer the consequences.
There are legal remedies for Chase and that is to engage the appraiser directly, establishing the Appraiser-Client Relationship by ordering a new retrospective appraisal with an effective date of the original appraisal.
(For the lay person – this is no different than your employer walking into your physician’s office and demanding a copy of your medical records and threatening the physician with legal action and board complaints if the physician does not comply. HIPPA laws are in place for a reason. Like it or not the physician is bound by the law and in this case so are the appraisers).
Some appraisers have lost all, if not a considerable amount of their business as a result of this practice. Chase Mortgage Banking should not be threatening and intimidating appraisers but should be acting professionally to engage the appraiser directly in a new assignment.