Appraisal Reviews

According to a statement by the Federal Reserve, "financial institutions are obligated to have effective, objective real estate appraisal and evaluation plans," and that appraisers performing reviews should "have the knowledge and skills to assess compliance with the Federal Reserves appraisal regulations and guidelines." Newton & Associates provides appraisal review services that are impartial, expert, professional and in line with the Federal Reserve's guidelines.

The Federal Reserve says appraisal reviews "should figure out whether the appraisal or evaluation is relevant for the transaction, the uncertainty of the transaction, and whether the manner by which the collateral valuation is accomplished ensures independence and quality." In addition, they "must denote whether the appraisal or evaluation report is true to the engagement letter, which gives an account of the scope of the appraisal assignment." Lastly, the Federal Reserve notes that "some financial institutions reinforce regular reviews with post-funding evaluations of appraisal quality for some of their high-liability or high-value affairs as a control to aid in revealing valuation problems."

In addition to adapting our work to the forms and guidelines of our review customers, there are four Fannie Mae forms that are widely used for review services, and we'll develop an appraisal review on any of them. They include an appraisal "desk" review, a "field" review, a "short" form and a "narrative" form. At Newton & Associates, we're skilled in all forms of appraisal reviews, review processes and the responsibilities of review appraisers.