102: Ongoing Review of Appraisals

A lender must continually evaluate the quality of the appraiser's work through the normal underwriting review of all appraisal reports, as well as through the spot-check field review of appraisals as part of its quality assurance system.

The lender may use our Residential Appraisal Field Review Report (Form 2000) for the spot-check appraisal component of its quality assurance system if it chooses to do so, but we do not require use of that form.

The lender must be satisfied that any appraisers it uses for spot-check field reviews are well-qualified.  The lender must have sufficient knowledge of our appraisal requirements to enable it to determine that the appraiser has properly addressed our specific criteria, the appraiser has developed objective and unbiased appraisals, and the appraiser has not engaged in any unacceptable appraisal practices.