Appraisal Reviews

As said in a statement by the Federal Reserve, "financial institutions are required to have effective, objective real estate appraisal and evaluation plans," and that appraisers doing reviews ought to "have the knowledge and skillfulness to determine compliance with the Federal Reserves appraisal rules and guidelines." For appraisal review services that are unbiased, qualified, professional and compliant with the Federal Reserve's rules, contact Lum & Associates.

Appraisal reviews "must decide whether the appraisal or evaluation is suitable for the transaction, the risk of the transaction, and whether the manners by which the collateral valuation is collected guarantees independence and quality," the Federal Reserve says. In addition, they "must announce whether the appraisal or evaluation report is even with the letter of engagement, which gives an account of the extent of the appraisal assignment." Lastly, the Federal Reserve says that "some institutions supplement routine reviews with post-funding assessments of appraisal quality for any of their higher-risk or larger-value dealings as a channel to aid in exposing valuation issues."

In addition to tailoring our work to the processes and guidelines of our review clients, there are four Fannie Mae forms that are largely used for review services, and we can formulate an appraisal review on any of them. They include an appraisal "desk" review, a "field" review, a "short" form and a "narrative" form. At Lum & Associates, we're trained in every type of appraisal review, review practice and the requirements of review appraisers.