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Appraisal Reviews
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. Brian J. Davis, RAA provides appraisal review services that are independent, well documented, 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."
There are four Fannie Mae forms that are generally used for review services, and we can prepare an appraisal review on any of them. They include an appraisal "Desk" review, a "Field" review, a "Short" form and a "Narrative" form. Brian J. Davis, RAA is experienced in all types of appraisal reviews, review procedures and the responsibilities of review appraisers.
- One Unit Residential Appraisal Field Review (3/05): Well check your appraisal for accuracy and provide exterior "field inspections" of the subject and comparable properties for maximum appraisal certainty. Perfect for any situation demanding a second opinion on value.
- Two to Four Unit Residential Appraisal Desk Review (3/05) : A lender uses this form for the spot-check appraisal component of its quality control process. This appraisal field review report is intended to provide the lender/client with an opinion on the accuracy of the appraisal report under review.
The Residential Appraisal Field Review Report (Form 2000) is used by lenders as part of their quality assurance system and by individuals to verify or contest the data or conclusions of an existing report. Field inspections of the subject property and comparables are NOT within the scope of a Desk Review.
Field and Desk Reviews provide both sale/transfer and a listing histories, for the subject property, for the three years prior to the effective date of the appraisal report under review. They also consider any trends this information may reveal. The review appraiser will also briefly summarize the steps taken to verify the report's data and explain the items that are not factual and/or accurate.
The review appraiser will indicate whether the original opinion of market value for the subject property was reasonable*. In any instance in which the review appraiser determines that the original value conclusion was unreasonable, he or she will complete Sections II and III of the review report form.
*Because appraisers' opinions can vary, the review appraiser must have conclusive evidence to support his or her determination that the original value opinion was unreasonable |
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We understand what makes a quality appraisal and what the most common deficiencies are, especially in our home market. At the same time, we are professional enough to recognize that our competitors in our market are capable of doing a good job! 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, you can rely on our independent judgment, because we offer professional, objective, ethical appraisal review services for our clients.Browse our website to learn more about our qualifications, expertise and services offered.
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