Appraisal Reviews

As stated in an announcement by the Federal Reserve, "financial institutions are obligated to have effective, objective real estate appraisal and evaluation programs," and that appraisers doing reviews should "have the familiarity and skillfulness to evaluate compliance with the Federal Reserves appraisal regulations and guidelines." For appraisal review services that are independent, expert, professional and square with the Federal Reserve's rules, contact Southern Star Real Estate Services.

As stated by the Federal Reserve, appraisal reviews "have to conclude whether the appraisal or evaluation is well-suited for the transaction, the danger of the transaction, and whether the methods by which the collateral valuation is acquired ensures independence and quality." Moreover, they "must demonstrate whether the appraisal or evaluation report matches the engagement letter, which describes the scope of the appraisal assignment." Lastly, the Federal Reserve notes that "some institutions reinforce regular reviews with post-funding assessments of appraisal quality for some of their high-liability or greater-value dealings as a control to assist in uncovering valuation problems."

In addition to adapting 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'll 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 Southern Star Real Estate Services, we're trained in all kinds of appraisal reviews, review procedures and the obligations of review appraisers.