Member Alert – Agreements with Lenders noting that Valuation Reports may be provided to the Lender’s Customer
This alert is directed to those Valuer Members and their Corporate Employers who undertake mortgage valuations on behalf of banks/lenders.
Further the API Member Alert published on 14 November 2018, ‘Valuation Service Agreement noting that the Lender may provide a copy of the Valuation Report to the Lender’s Customer’, the API strongly recommends to all API Members who are impacted by this issue that they:
- should not agree to any agreement (e.g. valuation services agreement, panel valuer agreement, lender’s valuation standing instructions), which contains a clause noting that the lender may or will provide customers with a copy of the valuation report and associated valuation instructions; and
- should, in the first instance, request the bank/lender to remove such clause from the agreement prior to agreeing to it; and
- notify the API of such requests from lenders (on a confidential basis) so that the API has oversight of all relevant agreements.
This issue poses significant additional risks to Members undertaking mortgage valuations. API strongly recommends that all affected Members and or their Corporate Employers to seek independent legal and insurance advice relating to this issue.
On a broader level, the API and APIV are continuing ongoing discussions with the Australian Banking Association and all interested stakeholder groups with the view of reaching an appropriate solution in the New Year for the profession and all stakeholders involved.
If you have any questions or concerns regarding this recommendation, please do not hesitate to contact:
- Amelia Hodge, API and APIV CEO, at email@example.com;
- David Brandon, National Manager – Professional Standards, at firstname.lastname@example.org; and/or
- Anna Shin, National Manager, Compliance and Risk (APIV Ltd), at email@example.com
To download a copy of this Member Alert, click here.