Appraisal Policy

Purpose:

This policy outlines the procedures used to ensure the independence, accuracy, and objectivity of appraisals obtained for mortgage loan applications. We are committed to complying with all applicable laws and regulations, including the Fair Housing Act, Equal Credit Opportunity Act, and the Uniform Standards of Professional Appraisal Practice (USPAP).

 

Appraiser Selection:

  • We select qualified and independent appraisers who are licensed or certified in the state where the property is located. Where possible and where required by the lender, we rely on the lender’s selected appraiser.
  • In the future, when we may have the ability to hire appraisers directly, we will maintain a rotating list of appraisers to avoid potential conflicts of interest.
  • We do not engage appraisers who are affiliated with the borrower, the mortgage broker, or any other party involved in the transaction.

Appraisal Review:

  • We review all appraisals to ensure they are complete, accurate, and consistent with USPAP standards.
  • We review the appraiser’s qualifications and experience.
  • We review the appraisal methodology and valuation approaches used.
  • We analyze the supporting data and documentation.
  • We identify any potential conflicts of interest or ethical concerns.

Appraisal Independence:

  • We do not pressure or influence appraisers to alter their valuations.
  • We communicate our expectations clearly without compromising the appraiser’s independence.
  • We provide appraisers with access to all relevant information they need to complete their valuations objectively.
  • We respect the appraiser’s professional judgment and do not interfere with their work.

Appraiser Communication:

  • We maintain clear and open communication with appraisers throughout the appraisal process. In most cases, this done via lender’s portal.
  • We address any questions or concerns promptly and professionally.
  • We provide feedback to appraisers to help them improve their performance.

Compliance and Monitoring:

  • We regularly review and update our appraisal policy to ensure it complies with current laws and regulations.

Grievance Procedure:

  • We have a clear and accessible grievance procedure for borrowers to report any concerns about the appraisal process.
  • We investigate all complaints thoroughly and take appropriate action to address any issues identified.

Training:

  • We ensure that our employees understand USPAP standards, ethical lending practices, and appraisal independence.
  • We ensure our employees understand the importance of appraiser independence and how to avoid potential conflicts of interest.

Transparency:

  • We disclose our appraisal policy to all borrowers and provide them with information about the appraiser selection process.
  • We encourage borrowers to ask questions and raise any concerns they may have about the appraisal process.
  • This policy is intended to provide a general overview of our appraisal practices. We reserve the right to modify this policy at any time. Any changes will be made available to borrowers upon request.

Contact Information:

For any questions or concerns regarding this policy, please contact us