Property Valuation
What is an 'appraisal review' under USPAP Standard 3 and when is it used?
AA. An informal check of an appraisal by the loan officer
BB. A formal evaluation of an existing appraisal by another certified appraiser for completeness, accuracy, adequacy, and quality of analysis; used by lenders, AMCs, and regulatory bodies✓ Correct
CC. The seller's review of the appraisal before accepting a buyer's offer
DD. A government audit of appraisals to detect bias in a geographic area
Explanation
An appraisal review (USPAP Standard 3) involves a certified appraiser formally evaluating another appraiser's work product. The review addresses whether the work is appropriate, credible, and meets applicable standards. Lenders use reviews for quality control, second opinions, or to evaluate disputed appraisals. Review appraisers may provide their own value conclusion or just evaluate the original appraiser's process.
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