You are trying to get a mortgage loan and you fall out with your mortgage professional or somebody offers you an overall better mortgage. You paid for your appraisal, it is yours correcct? No, your mortgage lender engaged the appraiser, for an appraisal report, and they are the client.
Many mortgage professionals, borrowers and REALTORs do not understand that by federal law (FIRREA act) the mortgage lender must engage the appraiser for an appraisal and be named as client on the appraisal report. Oftentimes appraisers hear "But you do understand, my personal check paid for that report, it is mine." Sorry, it just does not work that way.
In Law 101, law students learn that for a contract to be valid there must by an offer, acceptance and consideration. If a mortgage company offers and assignment to an appraiser with third party billing, (somebody else pays, such as the borrower) that is still an agreement (contract) between the mortgage company and appraiser. Appraiser ethics (USPAP) do not allow a report to be renamed or shared with anybody, but the client. Appraisers are tied to these ethics by state law in all fifty states.
If an appraisal was recent, some appraisers offer a discounted new appraisal report, with the understanding that this is a new assignment. This should be a new report with a new effective date. This can be done, without sharing the prior appraisal, although much of the information will most likely be similar. Appraiser's should be careful not to disrupt their first client's oppertunity for writing the mortgage loan. If a mortgage lender is still attempting to write a mortgage, I do not perform a second assignment for another party.
Appraiser often hear that is ripping off the borrower and this reasoning and logic is crazy. The lending industry is heavily regulated by the federal government, since the Saving & Loans scandal of the 1980's. This is one small problem of an overall helpful federal program. Some changes can be done to work out problems, however new federal legislation would be needed.