Workfile With Submitted Appraisal Reports?
Should You Include Your Workfile With Your Submitted Appraisal Reports?
On several forums frequented by real estate appraisers, there has been recent discussions about a particular Appraisal Management Company (AMC) owned by a lender who is requiring appraisers to include their ENTIRE WORKFILE with every appraisal report submitted (as of 5/21/2015).
The AMC is LenderVend, owned by Provident Funding.
One reason why this has come to the forefront is because Provident Funding has had to buy back numerous loans due to alleged faulty appraisals and other underwriting issues. So by demanding the appraiser’s workfile, they are attempting to protect themselves while requiring appraisers to do tons more work – probably at no increase in fee.
Most appraisers have decided (per forum posts) not to comply with this edict, and thus will not work for LenderVend/Provident Funding. If you are caught up in this situation, you will have to also make a business decision regarding this company’s policy.
If you want to read more about this situation, click here.
If enough appraisers comply with this new Scope of Work item from this singular company, it could become a requirement for many more. So be real careful about this, and your decision.
Related: a couple of years ago, a major AMC told appraisers that a photo of “every fixture” in the bathroom(s) would have to be in every appraisal report. So much stink was raised about that in various places that they backed down. The workfile issue is another stinky situation.
Excerpt of LenderVend Letter:
Effective 5/21/2015, LenderVend Appraisal Zone will require appraisers to upload their workfile (as defined by USPAP) in PDF format into appraisalzone.com.
At minimum the workfile must:
- A workfile must be in existence prior to issuance of any appraisal report
- Each workfile must include the following: name of client… true copies of written reports….summaries of all oral reports…