RPM Mortgage Appraisal Division Appraiser Certification. To: Approved Appraiser Panel

Transcription

1 RPM Mortgage Appraisal Division Appraiser Certification To: Approved Appraiser Panel From: Gary Vujovich, SRA Chief Appraiser-Appraisal Division Re: Current Status and RPM Guidelines Your receipt of this memorandum will confirm your current, individual status with RPM Mortgage Appraisal Division (RAD) as an appraiser on our Approved Panel List. This designation is reserved for individual appraisers and is not extended to firms. RPM Mortgage Appraisal Division (RAD) is responsible for ordering all one- to four-unit residential appraisal assignments, including FHA for RPM Mortgage. Ordering Process Receiving Assignments. Appraisal assignments are auto-assigned to appraisers by . The number of assignments an appraiser receives is based on assignment volume in the appraiser s service area and on the performance of the appraiser. Quality of work, timeliness in completing assignments and communication impact the amount of work an appraiser receives. Also the timeliness of conditions by the underwriter. Accepting Assignments. Each assignment has a standard fee and a standard due date. If both the standard fee and the standard due date are acceptable, the appraiser need only accept the assignment (with no commentary) and may proceed with the assignment. However, these are standards, and it is understood that individual assignments may necessitate a different fee or due date. The appraiser should then communicate why the standard fee or turnaround time is not appropriate.. The appraiser should NOT proceed with the assignment until appraisers comments are accepted by RAD. RAD may decide to assign to another appraiser, or modify the fee or assignment type. On the other hand, after beginning the assignment, if there is a need to change the fee or due date

2 because of unexpected reasons, the appraiser should post a message of any changes along with a reason for the change. RAD will typically approve changes for valid reasons. However, the change needs to be approved before the report is delivered. The system is designed to pay the fee amount in the system, not the fee amount on the appraiser s invoice. The appraiser should always confirm that he/she has accepted the assignment and that the assignment has been accepted by RAD before proceeding. The system is designed to re-assign to another appraiser if the appraiser does not accept within a period of time, such as within 24 hours. RAD cannot be responsible if an appraiser proceeds with an assignment without first accepting it, and it is then assigned to another appraiser. The standard turnaround time for an appraisal is one week or two days after inspection. There is also a $100 rush fee option if the due date is less than one week in which you can either accept or decline the assignment. Reviewing the Order. The appraiser should print out and review the Appraisal order. This appraisal order contains information the appraiser will need to complete the assignment. In addition to the property address and contact information, the appraiser should review the property type, the service type, the due date, the fee, and the supplemental instructions for completing this assignment. In compliance with federal regulations, RAD does not provide an estimated value or loan amount. Inspecting the Property. The appraiser should schedule a date to inspect the subject property with 24 hours after accepting the assignment. After the appraiser has scheduled a date to inspect the property, he or she should post a message in RAD. The appraiser should contact RAD if he or she is having difficulty reaching the contact person. RAD can assist the appraiser, or at least have an early record of the problem. Please DO NOT wait until the assignment is almost due to inform RAD that there is a problem making contact for an inspection. Communicating with RAD. Let RAD know as soon as problems occur. Communicating with RAD proactively regarding problems while completing assignments helps ensure the best possible service to our agents. The preferred method of communicating with RAD is by posting messages on the system and . Appraisers are expected to monitor messages in RAD which will be by . RAD cannot always follow up with s, phone calls, etc. Delivering the assignment.

3 The Appraiser has five business days to complete the appraisal assignment. The assignment must be delivered via RAD. The assignment is due before 5:00 PM on the due date. Please deliver the assignment as a pdf file Appraisal Standards: Unless otherwise instructed you are required to prepare appraisal reports according to the following minimum standards: A) Written- the appraisal report is to be in writing on an approved form by the appropriate banking regulatory agency. Regardless to the format chosen, the report will conform to the minimum reporting requirements governing appraisers and appraisals of the appropriate State or Federal Financial institutions regulatory agencies. The approved appraiser will be responsible for the accuracy of factual data contained in the report, reporting any negative factors which may exist in the subject neighborhood or subject property, verifying data from a disinterested source and developing a fully supported value conclusion. B) Conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) The appraisal report is to conform to USPAP, as approved by the Appraisal Standards Board of the Appraisal Foundation. C) Disclosure of Competency- The appraiser shall make an affirmative statement that the appraiser is competent to complete the report in accordance with USPAP. D) Appraisers Independence- Include in the certification required by USPAP an additional statement that the appraiser has acted in an independent capacity and that the appraisal assignment is not based on a minimum or specific valuation. E) Appraiser Interest- The appraiser has no direct on indirect interest in the property or the transaction and/or bias with respect to the parties involved. F) All reports are to be prepared in accordance with Fannie Mae/Freddie Mac guidelines, 1004MC, HVCC and HUD/FHA requirements if applicable. RAD expects that you are well versed on and remain abreast of the changes with the above referenced guidelines, requirements and standards. G) You will have a statement in each appraisal report that the appraisal conforms and is in compliance with the HVCC. Maintaining Approved Status:

4 RAD expects that you will advise RAD of any changes to your appraiser status, including renewal of your license, errors and omissions insurance, removal from any lenders appraisers panel due to performance deficiencies, becoming a party in a lawsuit due to your appraisal activities etc. Appraiser agrees not to advertise any affiliation with RPM Mortgage under this agreement and not to publicly reveal the existence of this agreement or any of its terms, without prior written consent of RAD. Code of Conduct Disciplinary Actions RPM Appraisal Department will review 10% of the appraisals submitted and will report to Fannie Mae, Freddie Mac and the appropriate state appraisal licensing board any adverse, negative, or irregular finding of such quality. Of this 10% a 10% sample will have property fieldwork documents consisting of a field review (Form 2000) to check the work of the original appraiser. The appraiser completing the field review will not be affiliated with the original appraiser or their firm. The Field Review will include an exterior inspection of the subject property and the comparables and an analysis with emphasis on the accuracy of the factual data on the appraisal report. If the field review reveals significant discrepancies that cannot be accounted for, a full new interior appraisal will be ordered. If upon completion of the 10% desk review or 10% field reviews show violations of USPAP the original appraiser will be notified in writing of these findings. The original appraiser will acknowledge the findings and a dated document will be attached to the appraisers file. The original appraiser has up to 21 days from date of notice to respond and can then appeal or agree with the desk or field review findings which will be reviewed by the Director of Appraisals, a designated member of the Appraisal Institute. If it is found that the original appraiser did violate USPAP the appraiser will be notified in writing with acknowledgment of receipt. The next appraisal completed by the appraiser with one infraction will have a field review of the next appraisal report submitted. Two such infractions not relating to fraud will result in removal from the approved appraiser list. Any fraud related findings would result in immediate removal from the list. All such violations of USPAP will be reported to the appropriate state and federal agencies. A copy of all the findings will be in the appraisers file. Any person employed by RPM in the loan production staff, or anyone noted in the HVCC III B trying to influence the appraiser or the appraised value will be subject to disciplinary action and noted in the employees file. Two such incidences will result in termination of the employee. The undersigned certifies that he/she has read, understands and agrees to the requirements set forth in this package of information. Furthermore the undersigned understands that, if approved, he/she will be acting as an

5 independent contractor and not as an employee of Residential Pacific Mortgage.. The undersign expressly acknowledges and agrees as an independent contractor, no agreement has been made guaranteeing any volume of business and that the undersigned is a supplier of appraisal products and services. Apprasier agrees to indemnify and hold RPM Mortgage harmless from and against any and all losses, claims or damages, penalties, cost and expenses, including reasonable attorney fees, arising from negligence or willful misconduct of Vendor or anyone acting under its direction or control on its behalf in connection with or incident involving an appraisal assignment or to the performance of this agreement. BY: NAME (print) DATE 3/31/09