Common use of Review of Appraisals Clause in Contracts

Review of Appraisals. ‌ As part of the post-Closing QC process, the PFI must continually evaluate the quality of its Appraisals through the normal underwriting review of all Appraisal reports, and by utilizing field reviews and desk reviews. The PFI should also utilize third-party tools and information when appropriate (such as analytical tools, public record databases, and automated valuation models) to help identify areas of inaccuracy and/or inconsistencies that may be indicators of appraisal deficiencies. A field review Appraisal must be performed for one out of ten (10) Mortgages Loans selected in the post- Closing QC random sample. The 10% field review requirement is for loans in the random sample that have an Appraisal. For targeted samples, a field review Appraisal is only required for reviews that are chosen for Appraisal related issues. The PFI must determine if the field review or its desk review identified any defects in the original Appraisal. If the PFI determines that the Mortgage Loan was not eligible as delivered, the PFI must notify the MPF Bank or MPF Provider immediately of its findings.