StreetLinks National Appraisal Services has announced the launch of a new underwriting and risk assessment appraisal review product, StreetLinks Comparable Opinion Report (SCORe). SCORe will provide lenders with a reliable second opinion of the validity, accuracy and appropriateness of the comparables utilized in an original appraisal. SCORe is a limited-scope, USPAP-compliant review completed by an independent appraiser with experience and geo-competency in the subject's specific market.
The intense scrutiny on home valuation, specifically the selection and validity of sales comparables in appraisal reports, has led many lenders to use unreliable products in an attempt to validate appraised values. For example, the use of Automated Valuation Models (AVMs) or desktop appraisal products completed by appraisers often located far outside the subject property market has become pervasive.
"AVMs rely on flawed or limited public data, while out-of-market appraisers lack local market knowledge and have no access to local market data (MLS)," said Steve Haslam, StreetLinks chief executive officer. "The only reliable way to validate the comparable selection and the credibility of an appraisal is by utilizing a second local appraiser with the knowledge, tools and data available to do so. SCORe accomplishes this at a speed and price far more attractive than other credible and compliant appraisal review products."
"We understand that underwriters are faced with a daunting task when it comes to appraisal review and validation," said Tony Ebeyer, StreetLinks chief operating officer and a certified appraiser. "Until now, there has been no dependable solution available that delivers timely and affordable results. With SCORe, we will have the original comparable selection validated by a second local appraiser in approximately 24-hours at a price substantially lower than a traditional desk review. Lenders, whether buying on flow or in bulk, will get the speed and price they need and receive a more professional and reliable analysis."
SCORe utilizes an independent, unbiased, local-market appraiser to review the comparables selected in an original appraisal. The SCORe appraiser, who is proximate to the subject property with access to the local market MLS, researches the data to provide a second opinion of the appropriateness and quality of the comparables selected by the original appraiser. SCORe results provide underwriters and risk managers the confidence and/or credible criticism about the validity of the comparable selection which is the nucleus of the appraisal process and the ultimate determinant of the final value opinion. A SCORe report that contradicts the original appraiser's comparable selection can also serve as an FHA or HVCC compliant basis for lenders to responsibly appeal the original appraisal or to order a replacement appraisal.
"We have seen thousands of appraisal reviews where AVMs or non-local desk review appraiser opinions were used to challenge an appraisal conducted by an experienced local appraiser," said Mike Floyd, StreetLinks chief corporate appraiser. "These methods contradict sound appraisal review methodology and, in many states, are not compliant with regulations. These review methods simply fail to provide the desired results. Lenders are wasting their time, money and resources, straining relationships with professional appraisers and ending up with no credible validation."
For more information, visit www.streetlinks.com/SCORe.