Appraisal Reviews - Pre-Funding and Post-Closing

The Federal Reserve has recently reiterated that "financial institutions must have an effective, independent real estate appraisal and evaluation program," and that appraisers performing reviews should "have the knowledge and expertise to assess compliance with the Federal Reserves appraisal regulations and guidelines." At Quality Review Solutions, we provide appraisal review services which are independent, qualified, professional and comply with the Federal Reserve's guidelines.

Appraisal reviews "should determine whether the appraisal or evaluation is appropriate for the transaction, the risk of the transaction, and whether the process by which the collateral valuation is obtained ensures independence and quality," the Fed says.  They "should also indicate whether the appraisal or evaluation report is consistent with the engagement letter, which sets forth the scope of the appraisal assignment".  The Fed also notes that "some banks supplement routine reviews with post-funding evaluations of appraisal quality for some of their higher-risk or greater-value transactions as a control to assist in detecting valuation problems."

 

QRS recommends not only post closing evaluation reviews, but also prefunding reviews. Why take the chance of an error on the property valuation, when in the event of Early Payment Default (EPD), the property is the lender's main opportunity to recoup any losses.

QRS offers numerous solutions for both prefunding and post closing reviews.  The lender may opt to obtain an AVM or an appraiser assisted AVM prior to receipt of the full appraisal report. The lender may decide to have an enhanced desk review completed by one of our nationwide specialists.  By using various national databases in addition to local Multiple Listing Service (MLS) in numerous areas throughout the United States, we are able to provide an independent verification of the information and valuation provided in the original appraisal report.  Our review plans offer many alternatives to our clients.  There are four Fannie Mae forms that are generally used for appraiser review services and we can prepare any one of them. 

 

The management team at Quality Review Solutions has over 50 years of experience and understands both what makes a quality appraisal, and what the most common deficiencies are. This experience and understanding allows our management team to have a keen eye for detail when reviewing appraisals.  The Uniform Standards of Professional Appraisal Practice (USPAP) govern appraisal reviews as well as appraisal reports, and you can count on us to ethically evaluate appraisal reports performed by others. 

 

In short, here at Quality Review Solutions, you can rely on our independent valuations because we offer professional, objective, independent and ethical appraisal review services for our clients.