If a mortgage borrower receives a copy of an appraisal report from a mortgage lender as a result of disclosure requirements, this does not make the borrower an intended user.

• A. True
• B. False
• C. It depends on the lender
• D. It depends on the loan type

Answer: (A)

The key idea is that being given a copy of an appraisal does not automatically make someone an intended user. Under USPAP, who is an intended user is defined by the appraiser’s designation in the report—the individuals or entities the appraiser intends will rely on the appraisal. In mortgage transactions, the lender is typically the client and primary intended user, while others can be named as intended users only if the appraiser explicitly designates them. Regulatory disclosure requirements may require the lender to provide a copy to the borrower, but that duty to disclose does not by itself change the borrower’s status to an intended user. So even though the borrower receives the report, they are not automatically an intended user unless the appraiser specifically designates them as such in the report.