R3 AMC, a full-service appraisal management company focused on helping lenders efficiently navigate the appraisal process, recently announced a new appraisal compliance assurance service for lenders wherein every appraisal submitted to lenders is pre-screened for bias and compliance requirements from Fannie Mae and Freddie Mac, according to a press release.
R3 AMC has automated this assurance service using PropMix’s Profet Review, an AI (artificial intelligence)-driven valuation quality control platform that includes comparable analysis, natural language processing, and image analysis.
Fannie Mae’s latest selling guide published in November 2024 requires lenders to ensure that appraisals do not contain “subjective and prohibited language relating to discriminatory practices and appraisal bias.”
The guide further requires that lenders also ensure that the appraiser “was objective and unbiased in the development of the opinion of market value in the appraisal report,” the release stated.
To help lenders meet GSE requirements, R3 AMC’s appraisal assurance service leverages Profet Review to analyze the appraisal for bias language, unacceptable words, and all photo compliance issues. Profet Review also provides the necessary workflow support to have the appraiser fix any issues encountered.
The AMC can then produce a final “pass report” from Profet Review to be attached to the appraiser submitted to the lender.
“Delivering an accurate and compliant appraisal to our lender customers is our top priority,” R3 AMC CEO Brent Jones said in the release. “Profet’s Edge Review automation is enabling us to deliver higher quality valuations to our lenders reducing their effort to conduct reviews. Profet Edge Review is also being leveraged by AMCs to have appraisers pre-screen an appraisal before submission to the AMC.”
Profet Review’s AI and machine learning models also help conduct comprehensive quality control checks on any valuation product - either UAD standard appraisals or alternate valuations - going beyond the rule-based checks of the legacy appraisal review platforms.