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Complying With Appraisal Requirements

Recent appraisal service offerings

Feb. 17, 2014

By SAM GARCIA Mortgage Daily

portrait of Sam Garcia

New appraisal requirements are being met with a flurry of services that offer help complying. Other resources being promoted promise to improve additional aspects of home valuations.

A recent white paper from DataQuick informs loan originators, mortgage servicers and appraisal management companies about how to improve appraisal review accuracy and efficiency.

Among best practices discussed are the interrogation of all appraisal components and the leveraging of automation and technology. The report recommends that reviews are done with specific business rules and compliance requirements.

Data Quick's report says special attention should be given to comparable sales used, their adjustments and the accuracy of their characteristics. Noted market conditions need to be confirmed as being realistic, and the value must be reasonable, supportable and defensible.

An improved user interface has been added to DataQuick's AppraisalQ, an automated appraisal review solution. The improved interface gives users secure access to AppraisalQ, seamless appraisal upload capability and simple order tracking. The delivery system is designed to provide quick access to completed reports.

SharperLending LLC said in a press release this month that a new version of its Appraisal Firewall supports usage on a variety of mobile devices, including tablets and phones. Appraisers will enhance mobile availability and synchronization between field work and the firewall.

SharperLending claims that the updated version provides clients with improved ordering and delivery while maintaining compliance with requirements from the Consumer Financial Protection Bureau, the Dodd Frank Wall Street Reform and Consumer Protection Act and appraisal independence requirements.

A document delivery service announced on Feb. 3 by RealEC Technologies securely delivers appraisals and valuation documents to borrowers in electronic and printed formats. The service helps lenders comply with the CFPB's recent amendment to Regulation B, which implements the provisions of the Equal Credit Opportunity Act and requires lenders as of Jan. 18 to deliver copies of appraisals and valuation documents to first-lien mortgage loan applicants prior to closing.

Mercury Network said in its own announcement that the ECOA Valuations Rule essentially requires the lender or AMC to notify all borrowers of several key issues before electronically delivering any appraisal report. Reports can't be sent as simple attachments in unencrypted e-mails without violating the Gramm-Leach-Bliley Act. In addition, many of the appraisal software platforms offering appraisal delivery tools have yet to address the new ECOA requirements.

Before the ECOA Valuations Rule was implemented, Mercury said it launched automated compliance with the rule for lenders and AMCs. The Mortgage Daily advertiser said that it provides a full audit trail to prove compliance.

In Waltham, Ma.., Pro Teck Valuation Services announced in January that its Appraisal Risk Review product measures appraisal accuracy, compliance and risk in support of investors' due diligence needs. The product additionally evaluates comparables and the final value, provides a risk score and recommends further due diligence based on the client's policies and tolerances.

A month earlier, Pro Teck unveiled a new hybrid appraisal product for home-equity loans and second-mortgage lending. Dubbed The Appraisal Desktop with Inspection, the offering is prepared by an in-state licensed staff appraiser in compliance with USPAP standards.

Hybrid valuation products from LRES promise to help lenders meet evolving requirements. Among the offerings are broker price opinions matched with repair costs; BPOs reviewed by licensed appraisers; and analysis of mortgage pool assets paired with current property value and condition.

ValuTrac Software announced on Feb. 5 that its technology has been integrated with LendingQB's loan origination system. The move will enable LendingQB customers to facilitate appraisals from within LOS and receive automated delivery of completed appraisal reports and other documents through LendingQB.

Appraisal services from Landmark Network have been added to the ReverseVision Inc. LOS, a news release last month said.

An independent third-party audit performed on Nationwide Appraisal Network for compliance with CFPB rules on behalf of a midsized lender had the AMC passing "with flying colors," the AMC reported. Nationwide Co-Founder Joni Pilgrim noted that the independent third party "reviewed and scrutinized our compliance report, read our policy manual, interviewed staff, shadowed staff, and interviewed my partner and me."

Appraisal Logistics says that it is "the only AMC in America with both SSAE 16 and ISO certification." The company's national sales executive, Jeff E. Jurin, noted that even though ISO is widely used in auto, manufacturing and government contracting, it isn't well known within the financial services sector.

Sam Garcia founded Mortgage Daily in 1998 and became its full-time publisher in 2000. Prior to his news career he worked in mortgage lending for two decades.

e-mail: [email protected]

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