RHL Appraisals is an independent, third party appraisal management company and has reviewed the final version of the Home Valuation Code of Conduct and has adopted and implemented the following written policies and procedures to ensure full compliance with the Home Valuation Code of Conduct (HVCC).
Section I – Appraiser Independence Safeguards
RHL Appraisals ensures that all appraisers are licensed or certified in applicable states. All appraisal applicants are cross-checked with the Appraisal Subcommittee database for active licensing and disciplinary actions.
We require adherence to all provisions of the HVCC by our internal staff, panel appraisers and stakeholders in the process. This ensures that the “development, reporting, result, or review of an appraisal” is not influenced in anyway.
Section II – Borrower Receipt of Appraisal
The HVCC requires the lender to provide the borrower a copy of the appraisal no less than three days prior to the closing of the loan unless the borrower waives the three day requirement. FCAM will ensure that this requirement is completed on behalf of our lender client.
Section III – Appraiser Engagement
RHL Appraisals is solely responsible for appraiser selection, retention and compensation. Appraiser selection criteria consider the following: licensing and education levels, competency of appraiser to complete the order within USPAP guidelines, quality of appraisal valuations, service and turn times, distance from property and currently workload capacity. Selection of panel appraisers is completed by a State Certified Residential Appraisal with expertise in the area of residential real estate appraisals. This selection process is independent of any loan production staff as required by HVCC.
RHL Appraisals policies and technologies track all communications regarding an order including appraiser, lender and internal staff comments. Throughout the process, the integrity of our appraiser independence policies is maintained.
Section IV – Prevention of Improper Influences on Appraiser
RHL Appraisals is an independent, third-party appraisal management company with no ownership affiliation with any lender.
RHL Appraisals will not provide any estimated property value or loan amount to the appraiser on behalf of the lender. We do not request appraisers to perform “Comp Checks” in compliance with the HVCC requirements.
RHL Appraisals ensures that all appraisers are fairly and timely compensated for their services regardless of the valuation outcome. Appraisers are contracted with FCAM on a vendor relationship basis only and no implication of an employer-employee relationship is established.
Section V – The Independent Value Protection Institute (IVPI)
RHL Appraisals fully supports the implementation of the IVPI as indicated in the HVCC. RHL Appraisals will provide information regarding the IVPI & the HVCC to the borrowers as needed by the lender.
Section VI – Appraisal Quality Control Testing
RHL Appraisals will ensure quality control testing is completed on a random selection of appraisal reports to ensure lender compliance with HVCC.
Section VII – Referral of Appraisal Misconduct Report
RHL Appraisals fully is aware that if any lender has a reasonable basis to believe an appraiser or Appraisal Management Company (AMC) is violating applicable laws, the lender will refer the matter to the appropriate authorities.
Section VIII – Representations and Warranties
RHL Appraisals policies and procedures are in full compliance with HVCC. Thus lenders can certify, warrant, and represent that the appraisal report was obtained in a compliant manner according to the HVCC. RHL Appraisals issues a “Certificate of Appraiser Independence” with each appraisal submitted to the lender. This certificate can stay with the appraisal providing for portability of appraisal within HVCC guidelines.
Section IX – Scope of Code
RHL Appraisals is aware that nothing in the Code shall be construed to establish new requirements or obligations that:
- Require a lender to use a particular method for property valuation
- Affect the acceptable scope of work for an appraiser for a particular assignment
- Require the lender or third party to take any action prohibited by law.