Appraiser Application Checklist

Transcription

1 Appraiser Application Checklist Application Requirements Complete the application and provide the following: Company Information Individual Appraiser Information State and County Coverage Product Fee Schedule Copy of Current State License Copy of Current E&O Insurance Completed W-9 Form - W-9 Form available at: Read Appraiser Qualifications Read Production Requirements Read Unacceptable Appraisal Practice Completed Application with Fee Table and Counties Covered Signed and dated Compliance Certificate Statement Signed Disciplinary Action Disclosure Signed and dated Conflict of Interest Statement Signed and dated ACT Appraisal General Provisions Please return this checklist with your complete application* to one of the following: ACT Appraisal, Inc. ATTN: Vendor Management 1141 East Main Street, Suite 102 East Dundee, IL P: OR docs@actappraisal.com *An incomplete application will delay addition of appraiser(s) to panel

2 Dear Appraiser, Thank you for your interest in joining our approved appraisal panel for ACT Appraisal, Inc. (ACT). For consideration as a provider for ACT, several factors are examined and ranked with respect to the market and products that you choose to provide, which would include report quality, delivery timeframes, delivery methods, timely communication, and your competitive fee structure. When considering these items at the time of your application, be sure to recognize the rewards of working with a professional company with over 20 years of experience in collateral valuation and risk management. Our goal is to build a long term relationship with our vendors sharing in the same goal of providing accurate, concise, and timely appraisal reports. Policies and Procedures Quality Control Each appraisal report is screened by a quality control staff member before it is delivered to our clients. We read the report for specific requirements the lender has defined to ACT. In addition, we analyze for industry standard practices. Any specific requirements are provided to you at the time of order placement. Please ensure these items are satisfied before transmitting your report to avoid any unnecessary communication between our offices. Repeated quality concerns may be subject to a reduction in future order volume or removal from our approved appraiser list. Compliance Certificate A Compliance Certificate is issued with every appraisal report. This certifies the appraisal reports are completed in compliance with the Dodd-Frank Act, in accordance with Appraisal Independence AIR and Mortgagee Letter , ensuring appraiser independence along with any active or pending regulatory requirements. Appraiser Independence In the event an appraiser is or has been pressured by any person or affiliate of the Client or ACT Employee to obtain a predetermined value or engage in any form of unethical behavior, Appraiser shall communicate the behavior to ACT immediately. In addition to our online appraiser sign up, the subsequent documents will complete your application to join ACT s panel of approved appraisers. Please carefully review and complete all of the requested information. We strive to maintain the top appraisers nationwide that are dedicated to providing consistent, exemplary service with a quality product, while adhering to our Service Agreement. Sincerely, Bryan Franks President

3 Appraiser Qualifications The foundation of our business is our professional appraiser panel. At ACT, we enlist and maintain the top appraisers nationwide. Our goal is to build a long term relationship with our vendors sharing in the common goal of providing accurate, concise, and timely appraisal reports. To be eligible in the ACT Appraiser Panel, an appraiser must meet the following minimum experience and licensure requirements: Be licensed by each state included in their service area, we prefer certified appraisers. Have 3 years appraisal experience for each product on their fee sheet No pending litigation By completing the appraiser application package, the appraiser hereby represents and guarantees the following: Has and will maintain any necessary licenses to perform the appraisal work required in accordance with state/local regulations and requirements Will immediately inform ACT in the event they no longer maintain such licenses Will conduct the appraisal within requirements as set forth by local, state and/or federal authorities Will carry sufficient E&O insurance to meet state law requirements Inform ACT in the event they are expecting/have litigation against them

4 Production Requirements Order Assignment Process Many AMCs prioritize the profit per order by assigning orders to the lowest fee appraiser and do not give the same consideration to proximity to subject property, geographical competency and proven quality and service of the appraiser. ACT does not set appraiser fees. The assignment process is crucial in providing an unbiased and efficient method to distribute orders fairly across our appraiser panel. All appraisers must be licensed; preferably FHA approved and have 3 years of experience. The various categories for optimal assignment include: Acceptable Turn Times Proximity Appraiser proximity to subject property & coverage area Quality Each appraisal is graded for its adherence to applicable guidelines and client specified requirements. Current Workload ACT tracks current workload of each appraiser. Appraisers that have reached their predetermined capacity will not be considered for an assignment unless a management exception is approved. Fee If all else is equal, ACT will consider the reasonability of the individual appraiser s requested fee. Order Acceptance Appraisers will be contacted by phone and/or with an appraisal order and given the location, due date, product type, specific overlays, additional service terms and product fee for the order. We do not broadcast orders to multiple appraisers. If you receive an order request from ACT, the order is yours to accept or decline within 12 business hours. Orders may be accepted by the following methods: Initially we place a phone call to your office or cell to let you know the order is being sent. You have the option of accepting the order at that time, verbally. Orders with accompanying engagement letters are sent via . You can respond and accept the order via . You can go to the ACT website and accept the order after logging in.

5 Special Instructions Each order contains special instructions for that particular order. These instructions are conditions of your contract that comply with the specific lender s overlays. It is essential that appraisers review and fulfill the requirements outlined in the special instructions section of each order. Noncompliance with any special instructions will require corrections and may cause delays. Delays as a result of grave errors may result in a reduction of future orders. All questions regarding the order and/or its special instructions should be directed to ACT via the Communication Log or phone call. Communication Communication is vital to the relationship between ACT and our appraisers. Appraisers are required to be responsive and to contact us if issues/concerns arise regarding any of the below: Delays Cancellations Problems with scheduling contact Missed Appointments Delay in report delivery ACT s goal is to provide an environment without coercion or influence for appraisers. ACT is committed to providing said environment for its appraisers that is in compliance with federal and state laws/regulations to ensure appraiser independence. Appraisers are expected to utilize the ACT website s Communication Log as the primary communication method. In order to remain compliant, do not correspond directly with any persons associated with the client; exceptions include DE Underwriter for FHA orders. Immediately report correspondence attempts by any persons to ACT Appraisal, Inc. Note: To limit the number of calls/ s from ACT, provide daily status updates in the Communication Log and any changes in status on your current orders. If you do not have access to your computer or our website please call ACT and provide the updates to an ACT employee. In the case that an appraiser has experienced coercion or undue influence by persons associated with the client to obtain a specific value or any unscrupulous activities, the appraiser is to contact ACT Appraisal, Inc. immediately. Appointments Inspection appointments are to be set via phone by introducing yourself and your company and the reason for your call At the time of the inspection, introduce yourself and provide business card if available Exhibit a professional demeanor and not one of a person who is in a rush Always walk the entire interior and exterior of the home Avoid persons accompanying you on your inspections with the exception of trainees/assistants If asked, explain that the time spent in the subject is a small portion of the total research done in preparation/completion of the appraisal.

6 Scheduling Inspection contact must be reached within 24 hours of order acceptance. Notify ACT immediately via the Communication Log or by phone of your inspection date or anticipated inspection date If you are unable to reach the contact within 24 hours, notify ACT. ACT will then obtain an additional contact number for you. Notify the contact of late arrival and/or scheduling conflicts immediately Appearance Professional attire and manner are expected at inspections Recommended attire: Polo shirts, button down dress shirts, clean denim/slacks, and appropriate shoes Avoid: Distressed/worn denim, athletic pants or shorts, flip flops/sandals, and hats No smoking Please remove shoes before entering the home and/or use booties over your shoes Prevent/Circumvent Unsuitable Topics with Inspection Contact Mortgage Terms Interest Rates Value Driving distance to subject property Comparables In the event the inspection contact discusses above topics with you, politely explain that you are unable to discuss that topic(s) with any persons other than ACT Appraisal, Inc. Payment Under no circumstances are you to accept any form of payment from the borrower, property owner or Real Estate agent. If a homeowner has questions regarding payment, please provide them ACT s phone number and direct them to contact us. Invoices are not to be included in the report. ACT distributes payment for services on a weekly basis for the prior week s completed orders. The engagement letter will also specify any various technology fees deducted from the appraisal fee on an order. Payment questions can be directed to accounting@actappraisal.com. Report Delivery Reports are due within 48 hours of the property inspection. Exterior inspection assignments are due within three (3) business days of assignment (unless otherwise specified). Appraisal reports must be submitted to our website in XML, PDF, ENV or AI Ready formats, depending on client requirements. Please do not include an invoice within your appraisal report. Please upload your invoice separate from the appraisal. ACT will specify the client to be named on the report. This information will appear on your engagement letter. Revisions requested by our QC department must be made within 24 hours of request.

7 After Completion In the event that the client or underwriting specifically requests additional report requirements, ACT may contact you to honor such requests assuming they are compliant with the Uniform Standards of Professional Appraisal Practice (USPAP), Fannie Mae and Freddie Mae guidelines, the Real Estate Settlement and Procedures act (RESPA), the Financial Institutions Reform Recovery and Enforcement ACT (FIRREA), and /or the Federal Housing Administration (FHA). Request made after completion are considered part of the original scope of work for the appraisal order and must be addressed within 24 hours of request Unacceptable Appraiser Practices ACT completes a line by line, comprehensive quality control, pre-underwriting process on every appraisal that we deliver. We do not rely on any type of automated scrubbing technology, as this technology cannot provide the comprehensive analysis needed in today s lending environment. In addition to the Client Specific QC Criteria contained in this document, all appraisal reports are preunderwritten for compliance with USPAP, Fannie Mae and Freddie Mac guidelines, RESPA, FIRREA, FHA and Client Specific Guidelines. Pre-underwriting QC is focused on current FNMA appraisal report forms. The completed and approved appraisal should lead the reader of the report to the same conclusions regarding estimated value and property condition as those derived by the appraiser. The following is a brief list of unacceptable appraisal practices published by Fannie Mae and supported by ACT. Development of and/or reporting an opinion of market value that is not supportable by market data or that is misleading Development of a valuation conclusion that is based-either partially or completely-on the sex, race, color, religion, handicap, national origin, or familial status of either the prospective owners or occupants of the subject property or the present owners or occupants of the properties in the vicinity of the subject property; or that is based on any other factor that local, state, or federal law designates as being discriminatory, and thus, prohibited Misrepresentation of the physical characteristics of the subject property, improvements, or comparable sales Failure to comment on negative factors with respect to the subject neighborhood, subject property, or proximity of the subject property to adverse influences Failure to adequately analyze and report any current contract of sale option, offering, or listing of the subject property and the prior sales of the subject property and the comparable sales Selection and use of inappropriate comparable sales or the failure to use comparable sales that are geographically and physically the most similar to the subject property Creation of comparable sales by combining vacant land sales with the contract purchase price of a home that has been built or will be built on the land

8 Use of comparable sales in the valuation process even though the appraiser has not personally inspected the exterior of the comparable properties by at least driving by them Use of adjustments to the comparable sales that do not reflect the market s reaction to the difference between the subject property and the comparable sales, not supporting the adjustments in the sales comparison approach, or the failure to make adjustments when they are clearly indicated Use of data-particularly sales data-that was provided by parties who have a financial interest in the sales or financing of the subject property without the appraiser s verification of the information from a disinterested source (for example, it would be inappropriate for an appraiser to use comparable sales provided by the real estate broker who is handling the sale of the subject property, unless the appraiser verifies the accuracy of the data provided with another source and makes an independent investigation to determine that the comparable sales provided were the best ones available.) Development of and/or reporting an appraisal in a manner or direction that favors either the cause of the client or any related party, the amount if the opinion of value, the attainment of a specific result or the occurrence of a subsequent event in order of receiving future assignments. Development of and/or reporting an appraisal in a manner that is inconsistent with the requirements of USPAP that were in place as of the effective date of the appraisal Appraisal Fraud Awareness Fannie Mae believes the likelihood of fraud or misrepresentation increases when the lenders are not able to confirm the owner of the subject property based on publicly available information. Confirming and documenting the current owner of the property based on publicly available information as part of the loan origination process helps to ensure a meaningful analysis of the sale or transfer history of the subject property. Examples of acceptable documentation confirming the current owner include, but are not limited to, the following: The appraiser s analysis and conclusions in the appraisal report, A copy of a recorded deed or mortgage, A recent property tax bill or tax assessment notice, A title report, A title commitment or binder, or A property sales history report. Note: This documentation is especially important for transactions involving an assignment or sale of a contract for sale and/or back-to-back, simultaneous, or double transaction closings or double escrows to support the property acquisition, financing, and closing.

9 Applicant Name: Company Name: Address: City: County: State: Zip Code: Phone: Cell Phone: Fax: Address: Appraisal Software: Current Errors and Omissions Insurance Policy Carrier Name: Policy # Exp. Date: Please include a copy of your policy with the application Insurance Information Licensing/Certification Information Type of Certification: License #: Date Expires: Type of Certification: License #: Date Expires: Type of Certification: License #: Date Expires: Fee Table Product Fee Turn Time (Hrs) CONV 1004/1073 CONV Multi Family CONV 1004C - Manufactured Home FHA 1004/1073 FHA Multi Family FHA 203K 1004/1073 FHA 203K Multi Family USDA 1004 Desk Review form Single Unit Desk Review form Multi Unit Field Review form Single Unit Field Review form Multi Unit 2070 Interior 2055 Exterior 2075 Exterior/2070 Exterior 1004D/CIR Final Inspection 1004D Appraisal Update FNMA Operating Income Statement FNMA Rent Schedule REO Addendum

10 Counties Covered Indicate which counties you agree to cover for the above fees: The below-signed vendor certifies all appraisals completed for ACT Appraisal, Inc. will adhere to the following requirements: 1. The Uniform Standards of Professional Appraisal Practice will be utilized for all appraisals completed. 2. The vendor agrees that all Associates of the Company will maintain, at a minimum, a state appraiser s license/certification. 3. Appraisals will be completed in compliance with the requirements of the Financial Institutions and Regulatory Agencies, and will adhere to Fannie Mae and Freddie Mac guidelines. Signature of the Appraiser/Applicant Date Printed Name of the Appraiser/Applicant

11 Compliance Certificate ACT supports 100% appraiser independence, as well as strict adherence to the statutes and guidelines set forth in the Fannie Mae and FHA Appraiser Independence Guidelines, as well as, the Appraiser Independence Provisions of the Dodd-Frank Financial Reform ACT (HR 4173). ACT s Compliance Certificate, assures lenders and investors the appraisal has been preformed according to an armslength process that meets and exceeds any present or pending regulatory requirements Please review and initial the items below: I understand and agree to provide services to ACT in accordance to the statutes and guidelines set forth in the above noted Appraiser Independence Requirements and per the appraisal related policies of Fannie Mae, HUD/FHA, USPAP, and the Specific underwriting requirements of the Lender/Client. I understand and agree that if I am contacted by a member of the lender s loan production staff, a mortgage broker, or any other party with an interest in the specific transaction with the intent of influencing or attempting to influence my unbiased and professional opinions, I am to notify ACT immediately. I understand and agree that I am to provide my professional and objective opinion of value and that I am NOT to consider any estimated or target value that a homeowner or real estate agent may provide at the time of the property inspection. I understand and agree that I am to provide my professional and objective opinion of value and that I am NOT to allow hearsay or unverified information to influence my opinion of value. I understand and agree that I am to provide my professional and objective opinion of value and that I am NOT to allow the purchase price in a purchase agreement unduly influence my opinion of value. Please initial each section of this acknowledgement, sign below and return with application. Signature of the Appraiser/Applicant Date Printed Name of the Appraiser/Applicant

12 Disciplinary Action Disclosure ACT requires the applicant to disclose any past, current and/or pending disciplinary actions by a state licensing board or other regulatory agency. Attach additional documentation you have (if applicable) in regard to any disciplinary actions along with this application. I do NOT have any past, current and/or pending disciplinary action by a state licensing board or other regulatory agency. I have previously been disciplined by a state appraisal board or other regulatory agency. Please provide the month/year you were disciplined, the reason(s) for discipline, and the specific disciplinary action taken the state/regulatory agency. Month: Year: Reason: I am currently disciplined by a state appraisal licensing board or other regulatory agency. Please provide the reason(s) for discipline, and the specific disciplinary action taken the state/regulatory agency. Reason: I have been disciplined by a state appraisal licensing board or other regulatory agency. provide the reason(s) for disciplinary action. Reason: Please I agree to notify ACT immediately should I become subject to any state appraisal licensing board and/or other regulatory agency disciplinary action. Please sign and date below and return with application. Signature of the Appraiser/Applicant Date Printed Name of the Appraiser/Applicant

13 Conflict of Interest Disclosure Please initial each section as applicable, sign below and return to ACT. This conflict of interest statement and the requirements herein are in addition to the Contingent and Limiting Conditions Acknowledgement that is part of every appraisal report. Required: All applicants must complete the section below. I do not have a personal relationship and I am not a family member of any ACT Client and/or Broker, including any respective subsidiaries and affiliates. I do have a personal relationship and or a family relationship with An ACT Client, who is an associate of, located in. OR If a family relationship, please define family connection. AND (Initial) I will not accept an assignment if I have a personal relationship with and I am not a family member of any employee of any ACT Client and/or Broker. I will not accept appraisal assignments associated with listings or sales that have been generated from my office. I will not accept an ACT appraisal assignment if I have a personal or business interest in the property being appraised. I will not accept an ACT appraisal assignment for a field review where I have a relationship with the original appraiser, if I am to be objective in my review. Please sign and date below and return with the other required documents to ACT Signature of the Appraiser/Applicant Date Printed Name of the Appraiser/Applicant

14 General Provisions By signing the below I (appraiser) hereby agree that if approved, then in consideration of such approval and with respect to, in consideration of, each appraisal order received from ACT that: A. I will be acting as an independent contractor and not as an employee, partner or agent of ACT. Nothing contained herein shall constitute a partnership or joint venture between ACT and myself (appraiser). B. ACT has made no guarantee of any volume of business. Appraiser understands the volume fluctuations will occur due to ACT s management of the appraiser panel based upon a variety of management approved administration policies including, but not limited to, the following: a. Our scoring model deems that the provider is not the most appropriate choice for any particular assignment or series of assignments. b. Assignments will be directed away from any appraiser where the potential for a conflict of interest exists, or public appearance of the potential for a conflict of interest exists. c. The appraiser is placed under investigation for poor performance or inappropriate conduct due to a verified complaint or internal QC audit. C. ACT is providing a variety of services in exchange for the amount paid to ACT by the client or borrower. D. Appraiser may be removed from ACT s approved appraiser panel for violation of this agreement. Any alleged infraction with the potential to cause removal will be communicated to the appraiser in writing. E. Appraiser must adhere to the production and qualification requirements as set by ACT from time to time. F. Appraiser must inspect the subject property for every ACT order that Appraiser has accepted and/or reassigned. The ACT approved appraiser is not allowed to sign as the Supervisory Appraiser if the Did Inspect box on the appraisal fm is checked. G. ACT may provide to the Appraiser confidential loan applicant information in order for the Appraiser to conduct an appraisal (customer and consumer information, including but not limited to, names, addresses, telephone numbers, account numbers, financial and transactional information and nonpublic personal information of consumers as defined in Title V of the Gramm- Leach-Bliley Act, and any implementing regulations or guidelines there under). The Appraiser shall maintain the confidentiality of all customer and consumer information provided by ACT and use such information only for the purposes of providing the appraisal and shall protect the confidentiality of such information in accordance with applicable federal and state laws and regulations, including but not limited to Title V of the Gramm-Leach-Bliley Act (15 USC 6901 et seq.) and its implementing regulations and guidelines. The appraiser specifically acknowledges that it shall take commercially reasonable steps to protect against threats to the security of customer and consumer information, protect against unauthorized access to or use of such information, and ensure the proper disposal of such information when no longer needed.

15 Appraiser is explicitly prohibited from directly or indirectly selling, loaning, renting, transferring, disclosing, conveying, or otherwise making available to any third parties any customer and consumer information provided or related to the appraisal without the express prior written consent of ACT. H. All terms of this Agreement shall be governed in accordance with laws of the state of Illinois. I. The provisions of item G shall survive the termination of this Agreement. Otherwise, Appraiser may terminate this Agreement at any time upon written notice to ACT. J. The Appraiser agrees and acknowledges that the arrangement between the Appraiser and ACT is nonexclusive. K. This Agreement supersedes all other agreements and understandings of the Appraiser, both oral and written, with respect to the subject matter described herein (but the Appraiser shall continue to be bound by any certificates or representations given to ACT not expressly in conflict with this Agreement.) Signature of the Appraiser/Applicant Date Printed Name of the Appraiser/Applicant For a copy of the Gramm-Leach-Bliley Act please click link below: