Our ability to deliver quality reports to clients is directly connected to your ability to be a top notch Appraiser. Because of that, we are hard at work also being your advocate since we are Certified Residential Appraisers and understand the rampent bad practices / illegal acts in this industry. If you are not already part of our team, we look forward to meeting you and changing that in the future.
- All appraisers are to adhere to the requirements as stated in the appraisal report disclosure including “Definition of Market Value”, “Statement of Limiting Conditions”, and “Appraiser’s Certification.”
- No one is authorized per Federal Law to “influence value.” If such a request is made by an employee or client of ProValu, the request should be denied. If the requests continue, notify ProValu immediately and this issue will be addressed by the Owner who is a Certified Residential Appraiser. Appraisers will not be pushed into illegal acts by ProValu or its clients without us looking into issues that arise. We will not discount the importance of Appraisal Independence Requirements during our investigation.
NOTE: The "Principle of Substition" is what drives Residential Real Estate. We make a point to investigate if it appears an Appraiser is attempting to inflate values. If caught, it is our responsibility to report that Appraiser to the proper State Board for the apparent violation. As an Appraiser, you know Price is not an approach to value. You should also know concessions are to be deducted from the sales price of your comparables when calculating the adjusted value.
Standards of Quality & Integrity
- Appraiser must be a State Certified Appraiser
- Appraiser shall perform and practice in compliance with the Uniform Standard of Professional Appraisal Practice (USPAP)
- All appraisal reports are to be completed properly and in accordance with the requirements of the applicable agency (i.e. FNMA, FHLMC, FHA, VA or individual institution); and must meet the minimum standards established under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA)
- Appraiser must comply with all applicable federal, state, and local regulations that prohibit discriminatory appraisal practices
- Our staff will work with Banks and Mortgage Lenders to ensure they respect the Appraiser Independence Requirements
Report Guidelines - Know Your Intended User
- USPAP is the Bible and must always be followed
- Conventional Loan - The Fannie Mae Selling Guide are your Guidelines
- FHA - The FHA Handbook are your Guidelines
- USDA - The USDA Rural Handbook are your Guidelines
- VA Loan - The VA Handbook are your Guidelines
- Portfolio Loan - The Bank has thier own set of Guidelines for its Investors
Note: We don't try and overstep what is needed for the Intended User. For Example, the Fannie Mae Selling Guide states MLS photos are acceptable. That is what we accept.
FAQ 2016-08: Is Turnaround Time an Assignment Condition?
Question: My state’s appraiser regulatory agency sent out a newsletter that says a due date is an assignment condition, and that failing to adhere is a violation of USPAP. Is this true?
Response: "Assignment due dates are contractual obligations, but are not assignment conditions under USPAP. Turnaround times and similar items are business practice issues, and are outside the scope of USPAP.
Assignment conditions are addressed in the Problem Identification section of the SCOPE OF WORK RULE (Lines 421-425). The Rule states in part:
"Assignment conditions include assumptions, extraordinary assumptions, hypothetical conditions, laws and regulations, jurisdictional exceptions, and other conditions that affect the scope of work. Laws include constitutions, legislative and court-made law, administrative rules, and ordinances. Regulations include rules or order, having legal force, issued by an administrative agency".
However, an appraiser failing to comply with contractual obligations could potentially be subject to "civil penalties".
Note: If you ignore an AMC's Service Agreement, the only recourse they have is to take you to Court and must prove they were damaged in some way by your actions. The conclusion is, you ignoring them and following USPAP lands you in a safe place. We don't blacklist Appraisers that follow USPAP and the Guidelines of the Intended User (i.e. FNMA, FHA, USDA or VA). In fact, you will recieve a letter stating you were removed from a panel and why per our legal requirement. You will only be removed for not notifying us when an issue arises, not turning around revisions within 48-hours on a regular basis and/or committing a violation that warrants being reported to your State Appraisal Board.