AMCs Appraisal Report Reviews
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AMCs are legally required to do appraisal report reviews…
Appraisers, an appraiser shared AMC appraisal report review documents with me, which the appraiser was given. I have not seen these before. See the PDF embedded below for an example.
Per state laws in the various states, AMCs are legally required to do appraisal report reviews per provisions of their state AMC license on up to 5% of the reports they process. AMCs must keep the results of those appraisal report reviews on file for a specified time period, and of course, send the review document to the client lender pertaining to the particular property appraised.
One company which provides a pre-printed review form by subscription to clients is Validox, LLC. You can see more about them on their website.
AMCs will either have in-house appraisers do the review, or else will contract review work out to appropriately licensed appraisers. Most states have laws saying the review appraiser must be licensed in the state where the appraised property is located. (This is one reason why AMCs retain a portion of the borrower-paid appraisal fee, or are separately paid by the lender.)
A challenge of this mandated review process is appraisers may never actually see the specific review, such as the attached example. Your work and the corresponding report can be judged either Pass (with possible incorrect reviewer comments) or Fail due to significant report issues alleged by the review appraiser (which may actually be true, or not).
What this boils down to is pretty simple: appraisers must exercise due caution when writing reports. Make sure all data is factually reported, and is consistent. Include all items that should be, and disclose why some items are not. Print the attached PDF and follow the USPAP compliance checklists so that your reports have everything necessary included.
And one final point: quit forcing report users and reviewers to ‘See Addendum’ for comments that can be included in the comment lines on the form pages. Put everything you can in those forms, before forcing page scrolling to the Addendum buried many pages later in the report. Most reviews are done on a computer monitor, not via hard copy printouts.