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Tainted Appraisal?

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Question: 
A customer inquired about a credit line deed of trust using his residence as collateral. He wasn't ready to submit an application, he just wanted to know what would be involved. The subject of appraisals came up and he asked who our approved list of appraisers were. I told him if and when he was prepared to submit an application to come back in. Two weeks later while I was on vacation, he came back and left an appraisal preformed by one of our approved appraisers. On the front page it said that the appraisal had been ordered by the bank. Can I accept this appraisal or has it been tainted?
Answer: 

Did the bank order the appraisal? If not, regardless of what the front page says you cannot use it. I would very seriously consider removing this appraiser from your approved list for falsifying an appraisal report. I may even consider a SAR for potential mortgage fraud on both the appraiser and the applicant.

First published on BankersOnline.com 12/15/08

First published on 12/15/2008

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