Appraisal Logistic Solutions, LLC (Appraisal Logistics) Appraiser Engagement Agreement APPRAISAL REQUEST ACCEPTANCE: By accepting the attached Appraisal Request, you agree to and accept all of the terms and conditions of the Appraisal Request / Assignment and this Engagement Agreement in its entirety. ACCEPT/DECLINE: You must accept or decline the attached Request within 6 business hours of receipt. If the order is not accepted within 6 business hours, the electronic order will time out and Appraisal Logistics will assign the order to the next Appraiser in the rotation. TELEPHONE CALLS: For quality and training purposes, all incoming and outgoing telephone calls between Appraisal Logistics and Appraiser, Appraiser s Office, Appraiser s Staff are subject to recording. ASSIGNED APPRAISER: This Appraisal Request is intended for the Appraiser assigned. It is expected that the Appraiser assigned to the Appraisal Request will complete the assignment. The Assigned Appraiser may elect to have a colleague complete the Appraisal Assignment if all of the following criteria are met; #1. The reassignment must be approved in writing by Appraisal Logistics. #2. The Assigned Appraiser must sign the Appraisal Report as a Supervisory Appraiser. #3. The Appraiser that completes the Appraisal Report must at a minimum be a State Certified Residential Real Estate Appraiser. Appraisal Logistics will not accept appraisal reports from an appraiser with licensing credential less than a State Certified Residential Real Estate Appraiser. APPRAISER PAYMENT PROCESSING: Appraisal Logistics is committed to timely appraisal fee processing. We work closely with our Clients to continually process invoices promptly to provide payments within a reasonable timeframe. Our policy is to process and mail appraisal fees to Appraisers within forty five (45) days of Appraisal Report final Completed status. Where our policy is 45 days, on average, payments are typically mailed within 30 days of final Completed status. Appraisal fees are typically processed and mailed to Appraisers within 16 business hours (48 calendar hours excluding weekends and holidays) of payment receipt from Client. Be advised, an Appraisal Report is not eligible for payment until our (Appraisal Logistics) order status is Completed. Orders that have been removed from Completed status ex. Request for Revisions status are also not eligible for payment while in said status. APPRAISAL FEES / CUSTOMARY AND REASONABLE APPRAISAL FEES: Appraisal Logistics is committed to the rules and regulations as outlined by the Interagency Regulators, Appraiser Independence Requirements and Dodd Frank. We promote appraisal fee transparency and Customary and Reasonable Appraisal Fees. If you feel the fees for the Appraisal Request are not Customary nor Reasonable, please do not accept the terms of the Appraisal Request. You can reach out to our Processing Department to request a fee increase and reasoning for the requested fee. All fee increase requests are passed on and approved or declined at the Client level. UNDER ALL CIRCUMSTANCES, APPRAISERS AND / OR APPRAISAL COMPANIES SHALL NOT COLLECT APPRAISAL FEES DIRECTLY FROM THE BORROWER / HOMEOWNER*. *Per Interagency and Dodd-Frank Guidelines, a Borrower may not pay the Appraiser directly for an Appraisal Report. OCC Document; OCC 2005-6, Attachment, #14 - Can a borrower pay the appraiser directly for an appraisal that is ordered by the lender?
Answer: Since the regulated institution has engaged the appraiser for its services, the regulated institution should be the party to remit payment to the appraiser. The regulated institution may seek reimbursement from the borrower for the cost of the appraisal. However, the borrower may not recommend an appraiser to the institution or select the appraiser. Fannie Mae Document; FM 0309, Q51 - Are borrowers precluded from providing payment for an appraisal to an AMC? Answer: The Code does not prohibit a borrower from providing payment to an AMC; however, the borrower may not pay the appraiser directly for an appraisal. Due to the above referenced regulations, all appraisal fees will be collected by Appraisal Logistics for distribution to the Appraiser / Appraisal Company. Be advised, your Client for this Appraisal Request and all appraisal assignments from Appraisal Logistics is the Lender / Investor (Client). All Appraisal Reports should be in the name of the Client as indicated on the Appraisal Request attached to this Agreement. DELIVERY DATE: The completed Appraisal Report shall be delivered / uploaded to the Appraisal Logistics no later than the Due Date as indicated on the Appraisal Request. If you feel that you cannot meet the referenced deadline, please decline the Appraisal Request or contact Appraisal Logistics directly to discuss specific conditions and/or concerns that will have a direct impact on meeting the completion date. The delivery date is set by the Client Representative requesting the Appraisal Report. Missed due dates may be viewed as service failures on the part of the Appraiser and a breach of this Agreement. APPRAISAL REPORT DELIVERY: If applicable, All Appraisal Reports are expected to be delivered in XML file format. The Appraisal Logistics web portal will automatically extract the Appraisal PDF from the uploaded XML file. If the requested appraisal report type is not a UAD/XML supported file type, simply upload the typical PDF version of the requested Appraisal Report. Please do not include your invoice as a schedule or element of the Appraisal Report document file. If you want to upload your invoice, please upload as a separate document / file. Be advised, because our appraiser payment processing is driven from our Appraisal Request, your invoice is not required. The invoice delivered to the Client at the time of Appraisal Report delivery is a unique invoice generated by Appraisal Logistics. Appraisal Logistics maintains a 100% transparency policy with our Appraisers and Clients in regard at all aspects of our business. Appraisal Logistics generates the final invoice for the appraisal, management and any ancillary fees (if applicable). As an Appraiser, you have a right to report / include your fee(s) for your services in the Appraisal Report. Report Upload Procedure - Upon Report completion, log into the Appraisal Logistics portal and access your account via our web-site: www.gotoals.com. Click on the order number that corresponds to the respective Appraisal Report. Select the Upload File(s) button, and upload the necessary files. If an order is delayed due to circumstances beyond the control of the Appraiser (e.g. put on hold, borrower not available for inspection, etc.) Appraisal Logistics will reset the due date based on the circumstances. Please communicate any and all delays immediately to Appraisal Logistics. We will inform the Client accordingly. Appraisal Logistics provides our Clients with monthly performance reports. These reports are utilized by our Client(s) to manage their Approved Appraiser Panels. Missed due dates / poor service could result in your removal from a Clients Approved Appraiser Panel. SCHEDULE INSPECTION: APPRAISAL LOGISTICS REQUIRES APPRAISERS TO ATTEMPT TO SCHEDULE THE APPRAISAL INSPECTION WITHIN 24 HOURS OF APPRAISAL REQUEST ACCEPTANCE. Successful Inspection Schedule Please update the status of the Appraisal Order with the date and time of the scheduled inspection. Our portal will automatically convert the order from Scheduled status to Inspected status once the inspection date and time have passed.
Unsuccessful Inspection Schedule If your attempts to schedule go beyond 24 hours with no success, please contact our Processing Team in an attempt to expedite the process. CLIENT COMMUNICATIONS STATUS UPDATE(S): Due to the Appraiser Independence Requirements (AIR), Dodd- Frank and the Interagency Appraisal and Evaluation Guidelines which limits communication between the Appraiser and the Client, the Client relies on periodic status updates as assurance that the appraisal process is moving forward and on schedule. The Appraiser is expected to provide regular status updates as the report progresses. At a minimum, updates are requested when: Left message or Unable to Reach Contact (attempted contact but was not able to connect) Scheduled (update must include date and time of inspection) Delivery Date delays REVISION and CLARIFICATION REQUESTS ETC (File Inquiries): From time to time, Lenders / Underwriters will have underwriting stipulations and / or questions regarding an Appraisal Report. After the completed Appraisal Report is delivered to the Client, the Clients Loan Production Staff are still prohibited from communicating directly with the Appraiser regarding many of the particulars of the Appraisal Report. Typically, all communications will come from the Client via Appraisal Logistics File Inquiry. Appraisal Logistics staff reviews all communications between the Client and Appraiser to assure compliance prior to delivery. If a communication does breech any compliance threshold, Appraisal Logistics Processing Team will reach out to the originator of the message to revise the communication in a compliant manner. YOU ARE REQUIRED TO COMPLETE ALL REVISION AND/OR CLARIFICATION REQUESTS WITHIN 24 HOURS OF RECEIPT. Timeliness is critical to the Client. APPRAISAL DISPUTES: It is understood that from time to time, the appraised value will not meet the demands of the Borrower(s). Under all circumstances, Borrowers concerns must be addresses reviewed and addressed. Borrower concerns are voiced via Appraisal Dispute. The Borrower will provide a formal Appraisal Dispute form with their concerns, reasoning and factual data for review. Although, their concerns and factual data may not have an impact on the conclusions of the Appraisal Report, they are the Consumer and their concerns must be heard and acknowledged. As an Appraiser, you are expected to conduct your rebuttals in a professional business-like manner. MINIMUM REQUIREMENTS As an Appraiser Professional: Accepting and completing appraisal assignments from Appraisal Logistics on behalf of our Client(s), you are at a minimum expected to meet the following requirements; 1. Appraiser Conduct: As a qualified Real Estate Appraiser Professional accepting appraisal requests from Appraisal Logistics, you are expected to conduct yourself, manage your business and employees in a professional manner at all times. 2. You are required to be familiar with the rules and regulations as outlined by USPAP, AIR, Dodd- Frank, RESPA, HUD and Interagency Appraisal and Evaluation Guidelines. Appraisal Logistics assumes that you are familiar in fact with said USPAP, AIR, Dodd-Frank, RESPA, HUD and Interagency Appraisal and Evaluation Guidelines. You may not communicate with the Client, Borrower, or Borrower s representative regarding value, or anticipated value and / or the loan amount, etc...
3. Any Appraiser that violates USPAP, AIR, Dodd-Frank, RESPA, HUD and/or Interagency Appraisal and Evaluation Guidelines will be immediately removed from any and all Approved Appraiser Panels. Any Appraiser or Client Representative that violates USPAP, AIR, Dodd-Frank, RESPA, HUD and/or Interagency Appraisal and Evaluation Guidelines will be immediately reported to the Client and the proper authority(s). Where Appraisal Logistics is not to be construed as a policing authority, we are a management organization that demands the highest in professionalism, quality and service. 4. As an Appraiser, you are required to follow any and all rules, regulations and / or guidelines as outlined / required by USPAP, AIR, Dodd-Frank, RESPA, HUD and Interagency Appraisal and Evaluation Guidelines and any other governing authority(s). Including but not limited to; a. Confidentiality: You will protect the confidential nature of the Appraiser-Client relationship. b. Record Keeping: You will prepare and maintain a work file for each appraisal, appraisal review, or appraisal consulting assignment as required by USPAP and other regulators. 5. Appraisal Photos: All appraisal Reports require original photos of subject and comparables. If original photos are not obtainable, Appraiser must identify the photo(s) source and reasoning. 6. Competency: It is the responsibility of the Appraiser to determine if he /she is qualified / competent to accept any appraisal assignment upon acceptance of the appraisal assignment. IF YOU FEEL THAT YOU MAY NOT BE COMPETENT FOR AN APPRAISAL ASSIGNMENT, YOU ARE REQUIRED TO DECLINE SAID ASSIGNMENT. The Appraiser must determine, prior to accepting assignment, that he or she can perform the assignment competently. Competency requires: 1. The ability to properly identify the problem to be addressed; and 2. The knowledge and experience to complete the assignment competently; and 3. Recognition of, and compliance with, laws and regulations that apply to the appraiser or to the assignment. Comment: Competency applies to factors such as, but not limited to, an appraiser's familiarity with a specific type of property or asset, a market, a geographic area, an intended use, specific laws and regulations, or an analytical method. If such a factor is necessary for an appraiser to develop credible assignment results, the appraiser is responsible for having the competency to address that factor or for following the steps outlined below to satisfy this COMPETENCY RULE. For assignments with retrospective opinions and conclusions, the appraiser must meet the requirements of this COMPETENCY RULE at the time of the assignment, rather than the effective date. WHEN FACTS OR CONDITIONS ARE DISCOVERED DURING THE COURSE OF AN ASSIGNMENT THAT CAUSE AN APPRAISER TO DETERMINE, AT THAT TIME, THAT HE OR SHE LACKS THE REQUIRED KNOWLEDGE AND EXPERIENCE TO COMPLETE THE ASSIGNMENT COMPETENTLY, THE APPRAISER MUST WITHDRAW FROM THE ASSIGNMENT.
INSURANCE REQUIREMENTS: Appraiser shall at all times during the term of this Agreement maintain professional liability insurance ( E&O Insurance ) covering damages arising from the professional appraisal services delivered by Appraiser under this Agreement. Appraiser s E&O Insurance shall: (i) have a minimum liability limit of $1,000,000 per claim and $1,000,000 in aggregate for all claims, (ii) be issued by an insurance carrier having a Best s Financial Strength rating of A- or better and Financial Size Category of at least Class IX, and (iii) be issued on an insurance policy form and by an insurance program acceptable to Appraisal Logistic Solutions, LLC (iv) The policy shall not contain a regulatory agency exclusion or any other exclusion for defense or damages relating to claims arising out of failed financial institutions or claims made by the Federal Deposit Insurance Corporation or any other state or federal regulator or insurer of banks, mortgage lenders or other financial institutions. Minimum E&O requirements in most areas of the country are $1,000,000 per claim. There are pocket areas and / or unique circumstances that permit lower limits that will be approved on a one-off basis. Please take this into consideration as we will not assign orders to Appraisers with less than $1,000,000 in areas where the minimum is required. Appraiser shall no later than the Effective Date of this Agreement provide Appraisal Logistic Solutions, LLC (or other persons or entities as directed by Appraisal Logistic Solutions, LLC) with an insurance declarations page or certificate of coverage evidencing Appraiser s current E&O Insurance together with any other insurance documentation relating to such coverage requested by Appraisal Logistic Solutions, LLC. Appraiser shall supply evidence of E&O Insurance whenever the E&O Insurance is renewed or replaced and shall immediately inform Appraisal Logistic Solutions, LLC (or other persons or entities as directed by Appraisal Logistic Solutions, LLC of any non-renewal, cancellation, termination or change of prior acts date/retroactive date of Appraiser s E&O Insurance. During the term of this Agreement, Appraiser may change its insurance carriers providing E&O Insurance, but shall not obtain coverage from a carrier or under an insurance policy, which results in the loss of prior acts or retroactive date coverage covering the dates on which assignments were performed under this Agreement. Appraiser consents to Appraisal Logistic Solutions, LLC confirming E&O Insurance coverage directly with the insurance carriers or insurance program administrators. Appraiser shall continue to maintain the E&O Insurance coverage required in this section, either by continuation of similar coverage with the same or a different insurance carrier or by the purchase of extended reporting period coverage or tail coverage, for a period of three years after the date of completion of Appraiser s last assignment under this Agreement. If you have any questions, concerns and or comments regarding the attached Appraisal request or this Engagement Agreement, please do not hesitate to contact Appraisal Logistics. Appraisal Logistics is committed to providing and maintaining a rewarding work environment for all of the parties of this appraisal process. Sincerely, Bob Hegburg Chief Risk Officer Appraisal Logistic Solutions, LLC 1997 Annapolis Exchange Pkwy
Suite 100 Annapolis, MD 21401 (443) 949-7862