Appraisal management company (AMC) Coester Appraisal Group has launched a repurchase guarantee that protects its clients against appraisal-based buybacks. Effective immediately, Coester Appraisal Group will guarantee all original appraisals it completes moving forward. The guarantee is applicable for any appraisal-based repurchase request as long as the loan is in good current standing and not in any stage of delinquency. Coester Appraisal Group’s repurchase guarantee is automatically applied to any original appraisal completed by Coester Appraisal Group after June 1, 2011.
The Coester Appraisal Group guarantee offers three levels of protection. Should the lender receive an appraisal-based repurchase request that falls within the guarantee program’s specific parameters, Coester will initiate and fulfill a formal rebuttal campaign to refute the repurchase request—completely free of charge to the lender. Should the company’s rebuttal campaign fail to successfully refute the investor’s repurchase request, and if the lender is required to repurchase the loan, Coester Appraisal Group will locate and secure a buyer for the loan. In doing so, Coester Appraisal Group extends its insurance coverage to protect the lender against any financial loss resulting from the sale of the repurchased loan, and will cover any difference between the loan amount and the subsequent sales price, should one exist.
“Lenders have always been concerned about buybacks, and now with the Dodd-Frank bill, they have even more reason to be concerned,” said Brian Coester, chief executive officer of Coester Appraisal Group. “More regulations mean more chances of violation. There are over 60 pages addressing appraisals in the Dodd-Frank bill. If lenders aren’t careful, they could be inadvertently putting themselves at buyback risk. Now more than ever, lenders need an appraisal company they can trust. At Coester, we’re confident that we’re that company—and we’re willing to prove it with our repurchase guarantee.”
