Bank is contemplating hiring licensed residential appraiser. If anyone has one, I have questions - for example, does it conflict with USPAP? Is it a conflict of interest? Any problems you can think of? By the way, candidate is related to insider.

You can have an in-house appraiser and meet USPAP standards. Also, if the appraiser is related to a current insider you might think that you face RESPA problems. But, the problems would only exist if the appraiser were independent. You can hire and use insiders without dealing with the affiliated business arrangement concerns and notices.

Thanks, Lucy. Over the weekend, I read the USPAP Canons and found no prohibition or conflict. I was just concerned that the wife sat on the board and approved loans her husband would have to then appraise. From a risk management perspective, I also think the bank needs to ensure their insurance will cover services performed by the appraiser.

Just when I thought nobody would reply - you came to the rescue. Thanks again