Appraisal Reviews

As stated in an announcement by the Federal Reserve, "financial institutions are required to have an effective, objective real estate appraisal and evaluation program," and that appraisers completing reviews are obligated to "have the proficiency and expertise to determine compliance with the Federal Reserves appraisal rules and guidelines." Here at Sun Compass Appraisals, LLC, we provide appraisal review services that are unbiased, expert, professional and in line with the Federal Reserve's regulations.

Appraisal reviews "should figure out whether the appraisal or evaluation is well-suited for the transaction, the uncertainty of the transaction, and whether the method by which the collateral valuation is attained guarantees independence and quality," according to the Federal Reserve. In addition, they "must show whether the appraisal or evaluation report is compatible with the engagement letter, which gives an account of the capacity of the appraisal assignment." The Federal Reserve also says that "some institutions add typical reviews with post-funding evaluations of appraisal quality for a number of their high-risk or high-value transactions as a control to help in identifying valuation complications."

In addition to adapting our work to the procedures and guidelines of our review customers, there are four Fannie Mae forms that are mostly used for review services, and we will prepare an appraisal review on any of them. They include an appraisal "desk" review, a "field" review, a "short" form and a "narrative" form. At Sun Compass Appraisals, LLC, we are trained in every form of appraisal review, review process and the obligations of review appraisers.