Can institutions use ‘readdressed appraisals’?

Can institutions use “readdressed appraisals” — appraisal reports that are altered by the appraiser to replace any references to the original client with the institution’s name?

Institutions may not use an appraisal prepared by an individual who was selected or engaged by a borrower. An institution’s use of a borrower-ordered appraisal violates the agencies’ appraisal regulations. Likewise, institutions may not use “readdressed appraisals” — appraisal reports that are altered by the appraiser to replace any references to the original client with the institution’s name. Altering an appraisal report in a manner that conceals the original client or intended users of the appraisal is misleading and violates the agencies’ appraisal regulations and the Uniform Standards of Professional Appraisal Practice (USPAP).

This statemement was prepared by The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), and the National Credit Union Administration (NCUA) (the agencies) and can be found here.