Appraisers

Benefits of Being an Appraiser with Patriot AMC

We understand the challenges that appraisers face daily. We understand that no two appraisals are the same and each assignment presents its own unique challenges. We also understand that not all AMC’s are the same. At Patriot, we have ample experience with other AMC’s and have used this knowledge to ensure that we are appraiser friendly and, most of all, different.

Patriot AMC will be doing something a little different than what you might be accustomed to. We will be paying our appraisers, twice per month, on the 1st and 15th. Our turn times and requirements are more reasonable than those found in the industry. After all, we are interested in building a relationship with you rather than just having you sit in our system. We are not a company that wants to sign up everyone who has an appraiser license. We actively seek the best appraisers in the area.

We don’t set your fees – you do. When we first start working together, we will contact you prior to assigning an appraisal order to verify your fee and turn time. If for any reason you cannot complete the assignment please let us know immediately in writing. And if you are not able to arrange the inspection appointment, please let us know as soon as possible so we can notify the client and extend the due date in the system. Communication is key and we believe that doing business this way is best. It enables both you and Patriot to work out any issues on the front-end and meet our clients’ expectations.

To reiterate, the one thing we ask from you – quality communication. It is so important that you communicate with us so that we can keep our clients informed throughout the entire process. We also expect quality appraisal reports and that due dates are met. We understand things change; not all assignments are the same. Because of this we insist on quality appraisers, who are adaptable, operate with integrity and possess excellent communication skills.

We look forward to sending you your first order. Partner with us today!

Appraisal Order Process:

We facilitate the entire appraisal process from order to review. All reports are completed in compliance with the Dodd-Frank Act in accordance with Appraisal Independence Requirements (AIR) – ensuring appraiser independence.

Find the most qualified appraiser to complete an appraisal assignment. We select each appraiser for every assignment – not a random draw generated by a software package or lowest fee. Selection will be based on geographic competency, product type, and service level. We do not blast orders to appraisers asking for the fastest turn time and lowest fee. We actively find the best appraisers in the area.

Appraisal Management Terminology

Appraisal — a written report impartially and independently prepared by a state-licensed or certified appraiser. It states an opinion of market value of a subject property as of a certain date. This is usually a summary report (meaning there is additional information in the appraiser’s work files), but a description and analysis of the subject property are provided.

Appraisal Management Company (AMC) — usually a third party that provides mortgage valuation services. Some of the services are selecting and engaging an appraiser, ordering the appraisal/evaluation , auditing the appraisal for USPAP and Appraisal Standards, accounts payable and receivable, and record retention.

Approved Appraiser/Evaluator List — a community lender list of board approved appraisers/evaluators, qualified and competent to perform appraisals/evaluations.

Automated Valuation Model (AVM) — a computer program that estimates a property’s market value based on market, economic, and demographic factors. Hedonic models generally use property characteristics (such as square footage and room count) and methodologies to process information, often based on statistical regression. Index models generally use geographic repeat sales data over time rather than property characteristic data. Blended or hybrid models use elements of both hedonic and index models. An AVM is not by itself an appraisal or evaluation, as defined the Federal Reserve’s Interim Final Rule

Broker Price Opinion (BPO) — estimate of the probable sales or listing price of the subject property provided by a real estate broker, sales agent, or sales person. A BPO generally provides a varying level of detail about a property’s condition, market, and neighborhood, as well as comparable sales or listings. A BPO is not by itself an appraisal or evaluation, but could be used for monitoring the collateral value of an existing loan, when deemed appropriate. Further, the Dodd-Frank Act provides “in conjunction with the purchase of a consumer’s principal dwelling, broker price opinions may not be used as the primary basis to determine the value of a piece of property for the purpose of loan origination of a residential mortgage loan secured by such piece of property.”

Client — USPAP states this is the party who engages or employs an appraiser for a specific appraisal. Regulatory agencies consider the client to be the bank/credit union.

Date of the Appraisal Report — USPAP states the date of the appraisal report which indicates when the appraisal was completed.

Effective Date of the Appraisal — to be USPAP compliant, the appraisal is required to have both an effective date of the appraisal and the date of the report. The effective date reflects the time period of the assignment results. With residential mortgage appraising, it is generally the date of the inspection.

Engagement Letter or Agreement — a document between an appraiser and a lender (or AMC, the lender’s representative) establishing the expectation of each to the appraisal assignment.

Evaluation — A valuation permitted by the Agencies’ appraisal regulations for transactions that qualify for the appraisal threshold exemption, business loan exemption, or subsequent transaction exemption.

Federally Regulated Institution — A national or state-chartered bank, a bank holding company, a federal savings or savings and loan association, and a credit union.

Federally Related Transaction — any real estate related transaction in which a regulated institution utilizes the services of an appraiser/evaluator.

Loan Production Staff — bank employees responsible for producing loan volume or approving real estate loans, as well as their supervisors.

Restricted Use Appraisal Report — the regulatory agencies do not believe this report has enough information appropriate to underwrite a federally related transaction. USPAP states this report briefly states the information necessary to provide an Estimate of Value, with just a reference to the existence of work file information.

Sales History and Pending Sales — USPAP states that the appraiser must state and analyze all current agreements of sales or listings of the subject property as of the effective date of the appraisal, and also list all sales of the subject three years prior to the effective date.

Scope of Work — USPAP has a Scope of Work rule that states it is the type and extent of research and analyses of each appraisal assignment.

Self-Contained Appraisal Report — this is the most complete and detailed appraisal report, according to USPAP.

Summary Appraisal Report — this is in USPAP Standards Rule 2-2b. This report summarizes all information that is significant analysis of the appraisal assignment, while still providing enough information for the client to understand the rationale of the conclusions and opinions of the report.

Uniform Standards of Professional Appraisal Practice (USPAP) — The Appraisal Standards Board of the Appraisal Foundation sets forth USPAP; they are the minimum appraisal standards for federal transactions for all appraisal assignments.