Appraiser Independence Safeguards

The Appraisal Firm verifies that all appraisers on our panel are licensed or certified by the state where the

property to be appraised is located. We track license renewals with our proprietary software,

E-trac, and check the Appraisal Subcommittee database (ASC.GOV) for disciplinary actions.

We require strict adherence to all applicable provisions of the HVCC from our employees, as

well as panel appraisers.

Appraisers are paid their full fee regardless of the outcome of the valuation.

The Appraisal Firm does not request that our appraisers engage in comp checks. In addition, neither the loan

amount nor an estimated value is provided to the appraiser.

The Appraisal Firm has a HVCC-compliant process for removing an appraiser from our panel. This process

takes into account quality, service, turn times, licensure and proper notification of appraisers, as

well as USPAP, HVCC and other industry guidelines.

Second appraisals can be ordered by lenders, if the procedures employed are consistent with the HVCC.

Our quality control process includes both electronic and manual appraisal reviews, which may

lead to a request for additional data and/or explanation from the appraiser, for clarification or for

support of their value conclusions, consistent with the HVCC.

 

Appraiser Engagement

The Appraisal Firm is responsible for appraiser selection, retention and compensation. Appraiser selection

criteria considers the following attributes: appraiser category including staff appraisers as well

as several categories of fee appraisers, competency to perform the order, quality, service and

turn times, distance from property and current capacity. In addition, our compliance with the

HVCC supports the portability of appraisal products.

The Appraisal Firms technology allows for the tracking of communication related to the order from the

appraiser and with the client. This includes all appraiser comments, lender comments or

comments by internal staff. Our system provides that only authorized and properly trained

internal staff communicates with appraisers.

 

Appraisal Quality Control Testing

The Appraisal Firm will work with lenders to assist them in procuring appraisal reports and will provide

appropriate reporting in an attempt to facilitate lender’s compliance with the HVCC.

 

Referral of Appraisal Misconduct Report

The Appraisal Firm will report appraiser misconduct to the appropriate authorities and is aware that if a lender

has reasonable basis to believe an appraiser or Appraisal Management Company is violating

applicable laws, the lender will refer the matter to the appropriate authorities.

 

Representations and Warranties

Lenders can rely on our policies and procedures being in compliance with the HVCC when

making their representations and warranties.

 

Scope of the HVCC

The Appraisal Firm is aware that nothing in the HVCC establishes new requirements or obligations that:

1) Require a lender to use an particular method for property valuation

2) Affect the acceptable scope of work for an appraiser for a particular assignment

3) Require the lender or a third party to take any action prohibited by law