What must an appraiser disclose when engaged for a federally regulated lending transaction?

When an appraiser is engaged for a federally regulated lending transaction, it is essential to disclose that the lender must engage the appraiser. This reflects the requirement for independence and objectivity in the appraisal process, as the lender is responsible for ensuring the appraisal meets the necessary guidelines and standards. The appraiser must be engaged directly by the lender to maintain the integrity of the appraisal and protect against potential conflicts of interest.

This disclosure ensures that all parties are aware of the relationship between the lender and the appraiser, which upholds the standards established by the relevant regulatory bodies. Understanding this relationship is critical for maintaining transparency and trust among stakeholders in the lending process.