Validox, a provider of appraiser panel audit services, announced that it will offer lenders and AMCs free USPAP reviews of all appraisers on their appraiser panels through its appraiser membership program.
These reviews will give lenders, banks, credit unions and AMCs no-cost access to appraiser compliance documentation required by the Consumer Financial Protection Bureau, Office of the Comptroller of the Currency, Federal Deposit Insurance Corp., Federal Reserve Board, National Credit Union Administration, Federal Financial Institutions Examination Council, Fannie Mae, the Department of Housing and Urban Development, and state appraiser boards.
“Validox is creating a novel way for appraisers and their clients to save significant amounts of time and money in complying with the rising demand of appraisal vendor compliance regulations,” Validox President Jim Wells said.
Ongoing due diligence is a critical appraiser panel compliance requirement for all lenders and AMCs, who must represent to state, federal and secondary mortgage market investors that they have followed the proper procedures. However, many lenders and AMCs either avoid putting together proper documentation until they get caught in an audit, or they spend a significant amount of money getting reviews, geographic certifications, product competence certifications, good-standing verifications and other written documentation to submit to the auditor.
Validox helps eliminate the cost and overwhelming task of putting together compliance documentation, and offers the benefits of document consistency and uniformity that regulators want. Through Validox’s system, auditor information requests can be grouped quickly and sent in a single email with a direct link to the requested information.
Appraisers can join with Validox to bring a single cost-effective solution to their specific clients, and all other clients they may have in the future. By working with Validox, member appraisers submit all the required geographic and product competency information and work files for review to Validox. Once received, Validox employs geographically competent appraisers in each state and area to review workfiles for USPAP competency and issue certifications of compliance. The fee that appraisers pay for annual membership is $179 and gives free access to their lenders and AMCs, as well as all other potential lender clients and AMCs, of their compliance certification.
Paying one annual membership can add up to saving thousands of dollars for appraisers, as there is no need to produce different workfiles and audit information for each individual lender and AMC, Validox said.
“Any depository [institution] is well aware that the OCC, NCUA, FDIC, FRB and FFIEC are requiring third-party risk management that deals with the appraisal function,” Wells said. “Whether a bank or credit union uses an AMC or has an in-house appraisal department or employee that engages appraisers directly, Validox gives them the tools to comply with the requirements and the ability to respond to auditors’ requests with a single click.”