I was reviewing some appraisal invoices and notice one in which the appraiser did not charge a fee. The loan notes that the fee was waived as a courtesy to the customer. As of right now, I don't have any more information on why the fee was waived.

Does the waiver by the appraiser raise any issues related to 1026.42(f) or any other areas of 1026.42? Your help is greatly appreciated.

The loan notes that the fee was waived as a courtesy to the customer.

The customer of the appraiser is the bank. So, who is waiving the fee? The appraiser or the bank? If it is the appraiser and they know the borrower, then they should have already recused themselves from this assignment. If it is the bank, then likely you have all sorts of fair lending issues present.

You need to explain in a little more detail what is really going on here.

Randy...it was the appraiser that waived the fee. And I agree. The appraiser should not have accepted the job.

Your appraiser reviewer should be informed that likely this appraisal has a potential to be not truly independent and needs to be rejected and likely you would be required to report this act to your State regulatory agency that oversees appraisers and also consider a SAR filing. If the appraiser failed to specifically acknowledge any relationship in the certification, I think that leaves no doubt as to what is required.

USPAP standards require:

STANDARDS RULE 2-3, CERTIFICATION
A signed certification is an integral part of the appraisal report.
(a) The wording of a certification does not have to match the following verbatim, but each of the elements must be
addressed:
I certify that, to the best of my knowledge and belief:
— the statements of fact contained in this report are true and correct.
— the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting
conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
— I have no (or the specified) present or prospective interest in the property that is the subject of this report and no
(or the specified) personal interest with respect to the parties involved.