Many that review do not know federal laws governing reviews.
Most requests for correction are petty and have no adverse impact on the credibility of the report.
For non-GSE federally related appraisals:
After obtaining an appraisal or evaluation, or as part of its business practice, an institution
may find it necessary to obtain another appraisal or evaluation of a property and would be expected
to adhere to a policy of selecting the most credible appraisal or evaluation, rather than the
appraisal or evaluation that states the highest value. (Refer to the Reviewing Appraisals and
Evaluations section in these Guidelines for additional information on determining and documenting
the credibility of an appraisal or evaluation.) Further, an institution’s reporting of a person
suspected of non-compliance with the Uniform Standards of Professional Appraisal Practice (USPAP),
and applicable federal or state laws or regulations, or otherwise engaged in other unethical or
unprofessional conduct to the appropriate authorities would not be viewed by the Agencies as
coercion or undue influence. However, an institution should not use the threat of reporting a false
allegation in order to influence or coerce an appraiser or a person who performs
an evaluation.
When an institution identifies an appraisal or evaluation that is inconsistent with the
Agencies’ appraisal regulations and the deficiencies cannot be resolved with the appraiser or
person who performed the evaluation, the institution must obtain an appraisal or evaluation that
meets the regulatory requirements prior to making a credit decision. Though a reviewer cannot
change the value conclusion in the original appraisal, an appraisal review performed by an
appropriately qualified and competent state certified or licensed appraiser in accordance with
USPAP may result in a second opinion of market value. An institution may rely on the second opinion
of market value obtained through an acceptable USPAP-compliant appraisal review to
support its credit decision.
An institution should file a complaint with the appropriate state appraiser regulatory
officials when it suspects that a state certified or licensed appraiser failed to comply with
USPAP, applicable state laws, or engaged in other unethical or unprofessional conduct. In addition,
effective April 1, 2011, an institution must file a complaint with the appropriate state
appraiser certifying and licensing agency under certain circumstances.³⁷
37
Mandatory reporting—(1) Reporting required. Any covered
person that reasonably believes an appraiser has not complied with the Uniform Standards of Professional Appraisal Practice or ethical or professional requirements for appraisers under applicable
state or federal statutes or regulations shall refer the matter to the appropriate
state agency if the
failure to comply is material. For purposes of this paragraph (g)(1), a
failure to comply is material if it is likely to significantly affect the value assigned to the consumer's principal dwelling.
(2) Timing of reporting. A covered
person shall notify the appropriate
state agency within a reasonable period of time after the
person determines that there is a reasonable basis to believe that a failure to comply required to be reported under paragraph (g)(1) of this section has occurred.
(3) Definition. For purposes of this paragraph (g), “state agency” means “state appraiser certifying and licensing agency” under
12 U.S.C. 3350(1) and any implementing regulations. The appropriate
state agency to which a covered
person must refer a matter under paragraph (g)(1) of this section is the agency for the
state in which the
consumer's principal
dwelling is located.
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