R3 AMC, a full-service AMC focused on helping lenders navigate the appraisal process, recently announced the industry’s first insured appraisal solution, Val-Insure.  This technology is for both overvaluation inaccuracies and undervaluation due to appraisal bias and related regulatory and legal claims. The program combines mandatory bias training with enhanced errors and omissions (E&O) insurance to safeguard stakeholders, R3 AMC announced in a press release.

“We developed this comprehensive solution to help protect lenders, appraisers, and R3 from claims of appraisal bias,” Brent Jones, CEO and chief appraiser at R3 AMC, said in the release. “Bias has no place in the appraisal process. Our goal is to ensure, through education and quality control, that we have done everything we can possibly do to maintain the public’s trust. While for an appraiser, being accused of being biased is unthinkable, we are going to be there in case it occurs.”

Val-Insure includes three components to address and mitigate risk: education of appraisers delivering covered appraisals to reduce bias and discrimination; review of covered appraisals for potentially discriminatory content; and insurance coverage that protects against losses caused by claims of bias or discrimination.

Bias Training Systems, a subsidiary of R3, is the preferred training provider for Val-Insure. Conventional and FHA loans are covered under this program, the release stated. The policy is underwritten by Hallmark Financial Services, a multi-line national property and casualty insurer. Unitas Financial Services serves as the managing general underwriter, and SSP Insurance Services acts as the originating broker.

“By combining R3’s policy with concise, practical, and high-impact appraiser training, we are confident R3 can help lenders satisfy risk mitigation requirements,” Dan Streit, owner of SSP Insurance Services, said.