APPRAISAL MANAGEMENT COMPANY (AMC) HISTORY/QUALIFICATIONS

FDI has specifically provided Appraisal Management Services for nearly 15 years and has processed well over a half million appraisal transactions in its history.  With over 6,000 part-time and full time qualified appraisers in its network led by on staff Chief Appraiser, FDI has the network where-with-all to provide national comprehensive local coverage.

As an Appraisal MANAGEMENT expert, not only is FDI limited to offering its own appraiser panel, FDI has successfully integrated lenders’ own appraiser panel into FDI’s panel so not to alienate existing lender – appraiser relationships, but to transition into a management model and provide additional opportunities for existing lender – appraiser relationships.  That said, FDI also has the ability to omit certain perceived under – performing appraisers designated by the lender as well.

FDI offers an extremely comprehensive valuation product offering ranging from AVMs to Full Commercial Appraisals.

VETTING & DOCUMENTATION

All appraisers are required to submit an application for approval.  Minimum approval standards mandate a current license and/or certification to be submitted as well as 3 years field experience.  The appraiser’s license is verified though the Appraisal Subcommittee (ASC) to make sure the license is active and no disciplinary actions are pending.  The ASC also provides daily email updates of any appraisers that the license status has changed which is cross referenced against the FDI database.

A copy of each Appraiser’s license or certification and E&O policy is kept on file electronically with the expiration dates coded in the database.  Works samples are also requested and reviewed by the FDI chief review appraiser.  FDI proactively updates its vendor records to ensure all data and documentation is current at all times.

OUTSOURCING OR SUBCONTRACTING

FDI does not outsource or subcontract any of its appraisal processes.  All work is completed by FDI staffed employees.

• Bidding Process

FDI manually selects it vendors based upon several criteria factor for each assignment, therefore no bidding process is used in the assignment of the orders.

• Turnaround Time

Appraisal orders are assigned out to a vendor within 1 hour of receipt.  For any orders that may take longer than 1 hour, the contact person on the order is notified of the delay.

Each appraiser is required to contact the borrower within 12 to 24 hour of receiving the order to set the appointment time.  The appraisal is then required to be returned to FDI within 48 to 72 hour after inspection.  Some reports such as multi family or complex properties can take a few extra days, however, the client is sent an updated status of any delays in the delivery of the appraisal. Normal turn time averages between 7 to 10 days depending on the property location.

• Discrepancies

Any and all appraisal discrepancies are to be emailed back to FDI to our appraisalconditions@financialdimensions.com email address. A Quality Control (QC) member will analyze the request for proper resolution. All cosmetic, potentially missing or incorrect descriptions are relayed back to the appraiser for further review and clarification. If the comparables are in question, FDI requests the client provide additional sales data that may be more appropriate.  At that time, FDI’s chief review appraiser will review and contact the original appraiser for re-evaluation if needed. Any modified report will then be delivered back to the client.

• Review Process
  

Phase 1: Manual

Market conditions and resultant legislative enactments now make it more important than ever to ensure appraiser independence.  Engaging our services provides the assurances needed to know that your appraisals are completed in full compliance with all applicable laws and regulations, including:

1. Uniform Standards of Professional Appraisal Practice (USPAP).
2. The Financial Institutions Reform, Recovery and Enforcement Act, inclusive of Title XI (FIRREA).
3. The amended HOEPA provisions relevant to prohibitions regarding appraiser coercion and/or influence, ensuring valuation independence.
4. There levant provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the recent amendments to Regulation Z, including, but not limited to, assurances that appraisers receive reasonable and customary fees for their appraisal related services.
5. Fannie Mae and Freddie Mac underwriting standards.

        Phase 2: Automated

FDI has employed an automated platform as a 2nd phase review process.  The automated platform allows for more easily identifiable issues checked and corrected automatically and allows the Quality Assurance (QA) staff to focus on more detailed findings in the appraisal.  At this point, the staff can request further clarification from the appraiser or clear the potential concern if determined not to be an issue.  The automated platform also verifies compliance with the UCDP before submitting the report through the UCDP portal.  Any hard stops or warnings will be displayed and can be handled at that time.

As such, all appraisals completed shall adhere to any relevant secondary market guidelines needed to comply with investor/pool requirements.

We utilize a vast network of independent contractor appraisers and our Appraisal Quality Assurance team closely monitors all licenses and certifications to ensure that only those appraisers with proper credentials complete all assignments.

Our Appraisal Quality Assurance team is responsible for the review of all appraisal products prior to delivery to each client, including full inspection reports, drive-by appraisals, field reviews and broker price opinions (BPO). All reviewer’s possess the training, expertise and competence to perform the review commensurate with the complexity of the transaction, type of real property and market.

FDI’s appraisal team includes a certified appraiser to act in the capacity of a Chief Appraiser/Compliance Manager, as may be required, to oversee and ensure that all relevant appraisal services comply with applicable law.

Our appraisal team works directly with the appraiser with the goal of insuring that each assignment is completed correctly and each report is thoroughly reviewed for compliance with the above referenced matters.  With a complete review, each report is further checked for internal consistency, correct appraisal methods and logical value conclusions, as well as a quality check for additional attachments, correct photograph requirements and proper limiting conditions forms.

Below is a map of the United States.  The states in COLOR are all the states Financial Dimensions are currently licensed in.  Any state in WHITE, indicate states we are not licensed in but have appraiser relationships.