Appraisal Review
WHY “appraisal review” for
Lenders?
• Financial
institutions are required to implement a program of independent
real property
appraisal and evaluation. Such a program is put into place
to ensure the independence of the valuation process and maintain
reliable and credible lending practices.
• The
qualified Review Appraiser has the experience, education, judgment,
and
ethics to fully understand the use of
an appraisal
in residential lending. Such a Review Appraiser can identify
what may be typical and common appraisal problems versus
that which is likely intentional mortgage fraud.
• Appraisal
Review by a qualified expert may uncover: (A) Failure of the
appraiser to comply with professional standards
as put
forth in the Uniform Standards of Professional Appraisal
Practice (USPAP). (B) Approaches to value that are incorrect.
(C) Inconsistent
or unreliable data in the appraisal.
•
The process of Appraisal Review provides the Lender with Quality
Control (a.k.a., “Appraisal Quality Assurance”)
for determining the reliability of appraisals upon which the
Lender
relies!
