A.7.1.4.3 Standard 3

A. This standard addresses the substantive aspects of developing a credible opinion about the quality of another appraiser’s work that was performed as part of an appraisal or appraisal review assignment.

B. This standard also addresses the content and level of information required in a report that communicates the results of an appraisal review assignment. Standard 3 does not dictate the form, format, or style of Appraisal Review Reports. The substantive content of a report determines its compliance. Like Standard 1, Standard 3 requires the development of a work file.

C. When a HUD Review Appraiser changes rents or adjust values, he/she is producing an appraisal and must develop a work file that complies with Standard 1. Generally, the HUD Review Appraiser is expected to opine on the quality of the appraisal under review and determine whether or not it is suitable for use in underwriting a HUD-insured mortgage.

D. The Multifamily Hub Director has waiver authority to rely on the Lender's appraisal review without a HUD staff appraiser review. Exercise of such authority may be appropriate for low-risk transactions in which the application is complete and reliable. The appraisal report must still be reviewed by a HUD staff member. The staff assigned to this task must have adequate training and must ensure that the appraisal report under review is USPAP-compliant and also follows the requirements outlined in Chapter 7 of this MAP Guide.