LoanSafe Appraisal Manager™ Quick Guide

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Overview

The purpose of this guide is to provide information on how LoanSafe Appraisal Manager can be utilized in your business to:

  • Assist in quickly assessing appraisal risk
  • Help to enhance  your appraisal review process

By applying the results of a LoanSafe Appraisal Manager report to the appraisal review process, your reviewers can be more confident in the accuracy and quality of their review.

Tips

  • Focus on using the scores and the sliders at the top of the report to drive your initial review.
  • Use the comments box in the LoanSafe Appraisal Manager report to add notes and share information with others.

Report Sections

The LoanSafe Appraisal Manager report is made up of 8 Sections.  The first two sections are designed to help guide your appraisal review process.

  • Scores & Sliders: Provides a quick glance assessment of the appraisal risk associated with the value, the integrity of the data, and compliance with USPAP, UAD and FIRREA, as well as market risk and misrepresentation.  The Property Complexity Slider also provides information on how difficult the property is to value in comparison to other homes in the surrounding neighborhood.
  • Alerts: Triggered when a potential issue is found relating to data integrity, compliance requirements such as USPAP, UAD or FIRREA, value, market risk inconsistencies and more.
  • Subject Property Information: A comprehensive view of subject property detail including property characteristics, owner/assessed/location information, recent transfer summary and MLS listing history.
  • Comparable Analysis: A Sales Comparison Grid view of the subject and comparables used in the appraisal.  CoreLogic property data and market level data is also provided within the grid for easy comparison.  Click on the blue photo icon to access MLS interior/exterior photos.
  • Maps: The report includes two maps:  a valuation map depicts the home values in the neighborhood and an interactive street map allows you to view the area around the subject property and map comparable properties.
  • Comparable Search Results: Using a process designed to resemble that which an appraiser uses when selecting comps, we apply group logic to the results and place each comparable into one of five groups: Excellent, Good, Average, Fair and Other.
  • Market Conditions: Provides a summary of the market surrounding the subject property.

Generating a Report

To generate a LoanSafe Appraisal Manager report, upload the MISMO® 2.6 file for the appraisal report to your selected platform.  Options are Batch, Connect2Data® or Real Quest®.

You will receive the report in HTML, however you may also save a PDF version of each file and print it for your records.

Note: First Generation PDF’s are also accepted and can be converted into MISMO 2.6.  Additional fees may apply.  Please work with your account manager if you are interested in learning more about this option.

Tips

When creating a PDF of the LoanSafe Appraisal Manager report, there are a few settings you can modify on the PDF Reader to update the look of the PDF.

  • To show the background coloring: Print Preview > Page Setup > Print Background Colors and Images
  • Removing headers and footers: Print Preview > Turn off headers and footers

Appraisal Workflow Process

Using the two scores at the top of the report, reviewers can develop a workflow process to help group appraisals and determine the next steps in the review process.

  • Valuation Risk Score incorporates a two-tailed risk spectrum which allows the reviewer to quickly assess the degree to which there may be property over- or under-valuation.  This score is on a scale from 1-999 with the optimal score being 500.  At 500, the appraised value is right in line with the Valuation Certainty Model.  As the score moves from 500 down to 1, there is an increasing risk of under-valuation.  As the score moves from 501 up to 999, there is an increased risk of over-valuation.  Generally speaking, a score between 300 & 700 means the appraised value is within the predicted range of value.  Scores outside of this range indicate greater potential for over- or under-valuation.
  • Integrity Risk Score gives insight into the overall quality of the appraisal report and adherence to UAD, USPAP, FIRREA and other standards.  This score is on a scale from 1-999.  As the score moves from 1 to 999, there is increasing risk of integrity issues in the way the appraisal was constructed.  Generally speaking, a score above 700 indicates a greater likelihood that there are issues that need to be addressed.

CoreLogic has developed a suggested workflow that customers can use to start their review process when incorporating LoanSafe Appraisal Manager.  This workflow can be adjusted and configured many different ways depending on your risk tolerance and capacity for review.  The workflow uses the scores to group appraisals into three different categories, Low Risk, Medium Risk and High Risk.

 General appraisal review recommendations based on LoanSafe Appraisal Manager risk scores:

  • Low Risk – Valuation Score = 300 to 700 and Integrity Score = <700
    • Cursory review of LoanSafe Appraisal Manager alerts
    • Quick scan of the appraisal sales comparison grid so see if any adjustments stand out
    • Look at appraisal subject and comp photos
  • Medium Risk – Valuation Score = 300 to 700 and Integrity Score = >700 orValuation Score = <300 or >700 and Integrity Score = <700
    • Review LoanSafe Appraisal Manager alerts
    • Examine comps presented in the LoanSafe Appraisal Manager report next to the comps used in the appraisal
    • Review LoanSafe Appraisal Manager data validation section for inaccuracies
    • Review appraisal sales comparison grid
    • Look at appraisal subject and comp photos
  • High Risk – Valuation Score = <300 or >700  and Integrity Score = >700
    • Comprehensive review of the LoanSafe Appraisal Manager report and the appraisal

Alerts

As noted in the workflow section above, reviewers can also apply alert results to the review process for a more detailed assessment of the appraisal risk.  LoanSafe Appraisal Manager includes a rules engine that assesses standard formatted data fields in the appraisal.  These rules fire alerts displayed within the report.  Some alerts are basic and some are very dynamic.  The rules are designed to use logic similar to what a reviewer uses during the review process.  This results in accurate identification of material issues allowing for a more efficient but still very comprehensive review process.

Alerts are grouped into the following sections:

  • Valuation Risk – Assesses the risk of valuation issues, looking at potential over- and under-valuation as well as market risk and adjustments.
  • Appraisal Rule Quality – Checks that required fields were provided, identifies any fields left blank, finds inconsistent information, flags data that’s been incorrectly entered on the appraisal, validates that the data is provided in the correct format, and indicates areas where the appraiser did not follow appraisal process guidelines.
  • Comparables Selection – Assesses whether the comparables selected are the most appropriate for the subject property.
  • Property Complexity – Identifies neighborhood price volatility; composition and conformity of the properties in the neighborhood; and the depth, robustness, and availability of data for that neighborhood.
  • Market Risk – Examines the subject property’s risk of early payment default and foreclosure. Provides an indication of the ability of the subject property to sustain its value and its marketability.
  • Misrepresentation Risk – Assesses the subject property’s repurchase risk due to fraud/flipping. Reviews chain of title and sales and loan history for unusual transactions.

All alerts can be configured and turned on/off, depending on the amount of information you are interested in displaying.

Additional Report Features

Once you have grouped the appraisal into the various review categories, the additional features can be used to provide more in-depth information on the appraisal.  Hover over the arrow in the top left of the html report to open the menu and navigate through the report.

The menu contains nine different options that you can expand and collapse for easier report navigation. The Expand All/Collapse All will expand/collapse all the sections that appear below the sliders. Clicking on a specific tab, such as Appraisal Review Alerts, will expand/collapse that section only.

In addition to the slide-out banner, users have the option of controlling report behavior via the toggles that appear next to each section head.

Batch users also have the ability to customize their default report settings and define which sections appear collapsed and expanded for all reports.

Questions

Please contact your account manager if you have any questions or would like to schedule a training session.