Why did you form QVS?
Quality Valuation Services' (QVS) mission is to provide nationwide valuation solutions to clients seeking higher standards of quality and customer service. QVS was formed in order to address the lending industry's need for HVCC-compliant processes and loan servicing solutions that deliver uncompromised results. QVS achieves these results though the company's technology and commitment to quality, transparency, integrity, competence, and reliability.
What makes you different from other AMCs?
Experience, Service, Panel and Technology. QVS' leadership team has significant experience leading large scale operations and have established many of the best practices currently employed at industry leading organizations. QVs is focused on service by providing communications, partnerships, guidance and information to go beyond client / vendor relationships. QVS' panel has been thoroughly vetted over the years and most were added through referral by our clients and deep list of industry contacts. QVS will continue to innovate and drive technology to improve connectivity, messaging and efficiency between all parties in the transaction.
How does QVS monitor compliance to regulations and client requirements?
In order to ensure QVS appraisals comply with all Federal and State regulatory requirements as well as Uniform Standards of Professional Appraisal Practice, QVS is very active with several organizations that help us keep current. Changes are almost daily therefore; we utilize many sources to be sure that all new regulatory changes are interpreted accurately. We modify our internal requirements and communicate them out to the field appraiser through engagement letters. In addition, QVS runs GAAR rules on EVERY appraisal assignment and provide additional manual technical reviews on EVERY assignment. The FNC GAAR rules perform within two separate series: the Compliance Series and the Risk Series. We use both series in our rule set. The Compliance Series assures that appraisals have run through a thorough screening for compliance with established regulatory standards and conformity to the GSEs' underwriting guidelines.
The Compliance GAAR is designed to assess appraisal report compliance according to the rules set forth by Fannie Mae, Freddie Mac, FHA USPAP, and FIRREA.
Client policies are incorporated into QVS's requirements and communicated out to our appraisers through our engagement letters. We will also add those requirements within the quality assurance process to ensure client specific requirements are met.
How large is your panel?
QVS' panel is composed of 8,000 certified appraisers. Of those 8,000, 2,500 are Blue Ribbon appraisers who currently complete 30% of all orders.
Can you add a client's appraisal panel?
QVS will add a client's appraisal panel, but each appraiser will be extensively vetted according to our on-boarding process.
How do you assign work to your appraisers?
All orders are automatically assigned to the best appraiser based on their ranking, quality score, and proximity to the property, capacity, service, and experience. The appraiser receives a detailed client specific engagement letter and is given 12 hours to accept the assignment. However, the QVS appraisal coordinators will make contact during that time to monitor and strive for a quicker acceptance. If an appraiser declines an order, a coordinator will continue the placement process by manually placing it with an appraiser who has verbally or otherwise accepted.
Are all your appraisal reports reviewed?
Yes. We have appraisers and underwriters perform technical reviews on 100% of all appraisal reports. During that review, our staff takes the opportunity to address any issues with the appraiser and scores each appraiser on quality and service levels.
How do you score your appraisers?
The appraiser is given the following scores after each appraisal report is reviewed:
- Appraised Value Reasonableness (Based on internal review)
- Overall Quality (based on quality scorecard of 44 red flag items)
- HVCC Compliance
- USPAP Compliance
- Service Levels (Turn time, communication, response)
In addition, quarterly appraisal scores are run based on sample appraisals from each appraiser completing work during the quarter. Scores are used to provide additional analysis regarding risk. GAAR (Generally Accepted Appraisal Rules) are used to enhance every manual review.
Do you use local appraisers?
Yes. We insure appraisers are within 25 miles of the subject property for urban areas, within 50 miles for suburban areas and within 100 miles of rural areas. Our average for urban areas is less than 15 miles.
What is your typical time to complete a standard 1004 report?
6 days or less.
What is your typical time for error corrections?
24 hours or less.
How do you handle pricing adjustments for complex properties or special circumstances?
During the assignment process, an appraiser may accept with conditions. Change of conditions could be complexity or timing related. If the appraiser accepts with conditions, they are required to provide specific information for the "change in circumstance". This information is immediately relayed to our clients for their approval. Appraisers are instructed to provide information regarding complexity as soon as it is known.
What geographic areas do you cover?
Nationwide Coverage including Hawaii and Puerto Rico.
Do you specialize in any specific area?
Although we are strong throughout the US, our greater strengths are the west coast including California, Nevada, Arizona, Oregon, and Washington. We are also strong in the Northeast and Southeast.
Can you integrate your systems with client systems or vendor management portals?
QVS has a rich technology platform that includes methods for system to system integrations. QVS has a number of client and vendor portal connections and can easily add additional connections.
What are the options for sending orders to you?
QVS has a number of ordering options. These include the following:
- QVS proprietary web portal, QITVS.com, which facilitates order processing and messaging, including credit card transactions
- Direct, system to system integrations that can be built using XML and various connection methods.
- FNC's appraisal port vendor portal with .ENV (AI ready delivery)
- GDMS' eTrac portal
- REALEC vendor portal (PDF delivery)
- EllieMae / Closing Corp vendor portal.
Is your system SAS-70 compliant / audited ?
Yes. QVS hosts our systems in a SAS-70 type II facility that is regularly audited. Data is in a secure environment and all access controls are in place to insure data protection.
Can you provide custom reports?
Yes. QVS has developed a robust data warehouse of all data associated with each order. Custom reports and analytics are rapidly developed from the data warehouse and provide detailed insight into the appraisal process.
Do you outsource any of your functions outside the US?
What is your call center's hours of operation?
5:30am — 6pm PST.
What is process for dispute resolution?
The QVS Quality Control Manager and/or Vendor Panel Manager manage any value disputes with our client's staff underwriters or processors. QVS facilitates meetings between QVS management and the client to ensure clear and concise communications regarding current appraisal issues, changes, or needs. A continual open dialogue with our client's underwriting and appraisal staff reduces valuation challenges and disputes. QVS has a structured process and standard form for requesting and responding to value disputes. This includes presenting new data (2 or 3 comparables sold within 90 days).
What is your percentage of value disputes?
1% of appraisal orders have been value disputes. And of the 1%, approximately 5% of those resulted in a value change.
Do you maintain an exclusionary list and if so, what is the criteria for placement?
Yes. The criteria for placement on the list is as follows:
- Providing poor quality of analysis and /or reporting.
- Failure to follow established QVS policies.
- Issues related to fair lending (discriminatory) practices.
- One or more significant over- or under-valuations (where sufficient data was available to support a different value).
- Financial loss incurred by QVS or their clients due to valuation deficiencies.
- Immediate addition to the list is possible for the following reasons:
- Appraisers who demonstrate malicious intent, such as:
- Misrepresentation of market, property, comparable sales or listings
- Significantly inflating values
- Non-disclosure of critical information that affect value
- Consistently falls below minimum standards
- Number of appraisals rated unacceptable within a specific period of time.
- If a client requests — Appraiser will be shut off for that client.
- Continual lack of communication/tardiness
- A single violation of the conduct section of the USPAP Ethics Rule
- Appraiser's license is suspended or revoked.
What is your process for reporting to state authorities, notification, documentation, etc?
Each state has its own reporting requirements. However, it is our policy at QVS that all appraisers who demonstrate malicious intent or any violation of USPAP is reported to each state the appraiser is licensed. Copies of the report, QC review, third party reviews, or any other pertinent data are sent to the state for further investigation.
Do you incorporate Freddie Mac's exclusionary list or any of the mortgage insurance company's exclusionary lists into your exclusionary list? If so, which ones?
Both Fannie Mae and Freddie Mac do not publish their list. However, Fannie Mae and Freddie Mac appraisers are notified that they are on their exclusionary list. QVS engagement letters require that the appraiser disclose if they are on the list and may not accept the assignment. QVS regards exclusionary lists very carefully. It is important to understand that an "exclusionary list" is not the same as a "black list". The term blacklisting is generally used in a pejorative context, as it implies that someone has been prevented from having legitimate access to something due to the whims or judgments of another. We don't "blacklist." We take great care to process reports and our investigation is consistent and well documented.
What is the average percentage of fee paid to the appraisers?
QVS pays appraisers between 71%-74% of the gross fee provided by our clients. This percentage is above the industry average.
What "Value-Add" services does QVS provide for the AMC fee?
In summary, the QVS value add is the order management, high touch follow up, technology (platform, data warehouse, analytics, etc..), and quality control review processes.
- QVS provides an extensive order management system and effective firewall between the lender clients and the appraiser through our platform. We are able to track, manage, and receive updates in real-time and deliver the appraisal to the client with multiple delivery options.
- QVS manages the appraisal process from assignment to delivery including engagement letters and appraiser training that address not only all regulatory and industry requirements, but specific client requirements.
- QVS provides high touch service provided by experienced, dedicated appraisal coordinators.
- QVS staff assigned to geographic territories to improve client and appraiser partnerships.
- QVS maintains a "no surprises" philosophy and requires appraisers and staff members to communicate any appraisal issues as soon as information is available.
- Vendor Panel Management ensures that only qualified appraisers are used. All licensing and appraiser's status for FHA assignments are verified for each assignment. Panel is made up of seasoned appraisers with at least five years experience. Blue Ribbon appraisers have 10 years or more experience.
- QVS offers easy payment processing that is customized for retail, wholesale, or correspondent lending. This includes direct invoicing or credit card processing. In addition, QVS ensures that the appraiser is paid every 30 days.
- QVS ensures all appraisals are compliant with HVCC, Fannie Mae, Freddie Mac, FHA, OTC, and OTS.
- QVS provides an extensive quality control process to ensure the appraisal is executed properly and will presented accurately.
- Technology platform is housed in a SAS-70 environment and custom solutions (QITVS.com), providing Analytics and Reporting.
- Communication is relayed in real time using the QVS technology.
- Appraisal orders are updated daily with the results available via the system 24/7.
Do you utilize a rules based automated review process?
Yes. QVS has over 1000 rules that can be assigned to appraisal report to insure that the technical and administrative reviews are conducted to client and regulatory requirements.
What is the scope of work for your review process?
An in-house desk review function is a Restricted-Use report intended only for use by QVS for its quality assurance process. The reviewer's work file contains additional information that may be necessary to completely understand the valuation results. The purpose of this valuation report is to identify subject property history, analysis of area trends, subject property, and all other pertinent data and provide a valuation estimate and risk rating score as part of the valuation report as required by the client based upon the information available. The intended use of the report is to assess the potential for whether the appraised value is overstated or inaccurate as of the effective date of the Original Appraisal (OA).
What is your quality assurance process?
The valuation assignment upon completion is delivered from the appraiser via QVS'CMS and then automatically run through the Appraisal Rules for completeness, critical, non-critical and compliance rules. These rules are utilized as a tool by the QVS QC staff. Once the automated evaluation is complete, a manual review is performed by a highly experienced quality control reviewer. If the appraisal requires any corrections, it is returned to the appraiser and again run through the automated rules function and reviewed for corrections by a QVS professional appraiser when revised report is resubmitted. The completed and approved product is then electronically delivered.
The manual review process is a critical component of our quality control function. The reviewer performs an enhanced review of the appraisal to identify, address, and flag any possible issues. The appraisal is returned to the appraiser to address any issues that were identified in the review. The review process will cover the following:
Form an opinion of the adequacy of the appraisal. The estimate of market value is of greatest concern, in that there is adequate support in the appraisal for the conclusion.
It is within the function of the review process to accept the appraised value or to request corrections from the original appraiser. It is the responsibility of the review appraiser to ascertain whether the appraisal report has been completed within QVS's guidelines. This includes verification of appraiser's signature, license or certification number (in file is acceptable), inclusion of the accepted definition of market value, signed certification and limiting conditions. In addition, the reviewer must provide substance as to why the appraisal is or is not supported with appropriate documentation. A meaningful reconciliation is required on all reviews.
All appraisals must comply with the Uniform Standards of Professional Appraisal Practice. In addition, QVS requires that all appraisers comply with the 15-hour USPAP educational requirements and subsequent 7-hour updates as required by law. Appraisers submitting work to QVS are also required to have and understand the most recent copy of USPAP weather in electronic or paper format. In addition, QVS ensures all appraisal policy and procedures comply with the requirements of the applicable agency including Fannie Mae, Freddie Mac, and FHA. Appraisers are also expected to study and understand each agency's policies and guidelines.