FAQ and Glossary Section

1. We have a dedicated person on staff performing our reviews. Why should we switch to Valuation Compliance?

By subscribing to Valuation Compliance, you will effectively be getting seven, experienced review appraisers on your staff on a variable cost basis. All of our Senior Reviewers are state licensed and have an MAI Designation from the Appraisal Institute. We perform over 1,000 appraisal reviews annually with over 100 years of combined experience.

2. We have been using a local appraiser to perform our reviews. Why should we switch to Valuation Compliance?

Using a local appraiser to review your appraisals can cause a conflict of interest if that appraiser is also performing fee appraisal work and competing with other local appraisers. A local appraiser reviewing a competitor could alienate good appraisers in your market if they are being biased, overly nitpicky, and/or utilizing appraisal or bidding data for an unfair competitive advantage. Valuation Compliance strictly operates in a review capacity only. We do not compete with the appraisers whose work we are reviewing.

3. We are using a retired appraiser to perform our reviews. Why should we switch to Valuation Compliance?

Retired appraisers can be effective reviewers. However, appraisal review requires constant continuing education to stay on top of the latest regulations, trends, developments, and methodologies. Continuing education is both time-consuming and expensive, especially when travel is involved. Having access to the latest market data is absolutely essential to being an effective review appraiser as well. Obtaining this data can be cost prohibitive and time-consuming for a part-time retired appraiser.

4. I have a specialized property that I need appraised. Can you help me find a qualified appraiser?

We have relationships with local appraisers as well as well-respected national firms that can assist you with any type of commercial property. We have the experience to competently review these specialized properties as well.

5. I have an out-of-state property that I need appraised. Can you help me find a qualified appraiser?

We have a plethora of experience going into new markets. Our extensive network of local and national firms means that if we don’t immediately know who to use for a job, we are least one phone call away from finding that right person for the job.

6. Are there any property types you don’t review?

The only properties we don’t review are single-family homes or multi-family (including condos and lots) with four units or less. Everything else is fair game.

7. Our credit policy requires a sample of the reviews we have done internally to be audited. Can you help us?

This is one of our specialties. Interagency guidelines require lenders to have a system in place for quality control. We are happy to assist you for this purpose.

8. The regulators are here. Can you help us answer their questions?

No problem. We are here for you and happy to help you respond to any questions or concerns. We have never had a regulator reject an appraisal that has gone through our review process.

9. I have a portfolio of appraisals done for other institutions for loans we have participations in. Can you review these for us?

Again, no problem. This situation is common. Having an extra set of eyes on a large portfolio can save time and money down the road.

10. A prospective borrower would like us to use an appraisal that he ordered on his own. Can you review this appraisal?

We can, but it would not be prudent. Regulations forbids the use of an appraisal that was ordered by a borrower.

11. What if the borrower brought in an appraisal but it was ordered by a different lender?

Now this is a different story. If the appraisal was ordered by another Financial Institution on behalf of the borrower, then you can use that appraisal as long as the other Financial Institution sends the appraisal directly to you. The chain of custody must go from original lender to lender. At this point, we can review this report on your behalf.

12. In this scenario above, should we have the appraiser send a new copy of the report addressed specifically to us?

Again, no. If regulators find out you are tampering with salutations and client names, they might suspect you are tampering with other things in the report. You must use the original report supplied by the original client and keep proper documentation on the approvals and chain of custody. This situation is a good example of the nuances to appraisal review that we take pride in knowing.

13. Our approved appraiser list has not been updated in years. Can you help us with this?

Absolutely. This will be our first task when you sign up with Valuation Compliance. We will perform a comprehensive review of your list and make suggestions based on our experience with the appraiser. We also require each appraiser to annually submit licensing status, continuing education, and Errors and Omissions insurance. We also check each appraiser for disciplinary measures and licensing status against state and national databases.

14. What is the turnaround time for a review?

The typical turnaround time is 3 to 4 days upon receipt of the appraisal provided that the report does not need revisions.

15. We have a rush closing this week. Can you accommodate rush reviews?

We can complete a review on a “clean” appraisal within 24 hours or 48 hours for a modest additional fee.

16. How do you monitor appraisers to ensure they deliver their reports on time?

We are in steady communication with the appraiser from the start of the bid to the completion of review. We send out notices 3 weeks out and 1 week out to ensure that the appraiser has scheduled a property inspection and that there are no major hiccups to completing the report on time. Appraisers often call us with appraisal questions to ensure that their reports pass our review the first time around.

17. What happens if the borrower or our staff is unhappy with a particular appraisal?

We are happy to address questions and concerns relating to the appraisal, as well as act as an intermediary to avoid introducing bias into the appraisal process. We can go back to the appraiser and request revisions if they are missing key facts in the original report, or if new information becomes available.

18. Is there a monthly cost to your review services?

We do not charge a monthly fee for our services. All of our reviews are on a per review basis. We do charge a nominal annual subscription fee, which includes maintenance of the approved commercial appraiser list mentioned earlier.

19. Are the review fees based on the subject property value?

No, our fees are on an objective scale based on property type, complexity, and size. We will provide a handy table that lets you know exactly how much a review will cost prior to ordering the appraisal. The review fee is also prominently stated when appraisal bids are passed on to our client.

20. Do you offer discounts for services on REO/OREO properties?

Yes, we offer discounts on bank-owned properties classified as special assets, REO, OREO, or client-owned branch and office properties.