Appraisal Reviews

According to a statement by the Federal Reserve, "financial institutions must have an effective, impartial real estate appraisal and evaluation program," and that appraisers fulfilling reviews should "have the familiarity and expertise to assess compliance with the Federal Reserves appraisal regulations and guidelines." At Preferred Appraisal Service, we provide appraisal review services that are objective, qualified, professional and in line with the Federal Reserve's regulations.

Appraisal reviews "have to verify whether the appraisal or evaluation is applicable for the transaction, the risk of the transaction, and whether the processes by which the collateral valuation is collected guarantees independence and quality," according to the Federal Reserve. In addition, they "should indicate whether the appraisal or evaluation report is compatible with the engagement letter, which describes the scope of the appraisal assignment." The Federal Reserve also states that "some financial institutions supplement regular reviews with post-funding evaluations of appraisal quality for a number of their high-liability or greater-value contracts as a way to help in discovering valuation issues."

We are aware of what the most common defects are, particularly in our home market, as well as what represents a quality appraisal. At the same time, we are skilled enough to respect that the competition in our market is able to do a great job. The Uniform Standards of Professional Appraisal Practice (USPAP) govern appraisal reviews and appraisal reports, and you can count on us to justly review appraisal reports performed by others. And those others might be examining our work, too!