Answer by Dan Persfull:This is the one.
Under the agencies' appraisal regulations, the appraiser must be selected and engaged directly by the institution or its agent. The appraiser's client is the institution, not the borrower. An institution may use an appraisal that was prepared by an appraiser engaged directly by another financial services institution, as long as the institution determines that the appraisal conforms to the agencies' appraisal regulations and is otherwise acceptable.
Answer by Kathleen Blanchard:Borrowers have not been allowed to order appraisals since FIRREA was passed in 1989 and implemented in 1990, after the savings and loan debacle of the late 1980s. FIRREA contained the initial appraisal requirements for banks.
First published on BankersOnline.com 7/19/10