Podcast Episode #3: The 3 Levels of AQM

Friday, April 25, 2014

In This Episode

Earlier this year, Fannie Mae announced the launch of its Appraiser Quality Monitoring system, or AQM. Essentially, the AQM is a government-derived type of system that monitors the quality and consistency of your appraisal reports. With this system in place, the agencies will be able to determine whether your work requires consistent, ongoing review or if you will end up on government-level “do not use” list.

In this episode, we cover:

●     Background information on the Uniform Collateral Data Portal (UCDP) and the Uniform Appraisal Dataset.

●     How this data was aggregated and how it’s being used to judge appraiser work.

●     The intended use of the AQM by lenders and AMCs.

●     Who can and can’t view agency blacklists, which are distributed monthly and are considered restricted content that should not be broadly distributed.

●     The three levels of review under the AQM system and the impact of each.

●     How quickly placement on these agency blacklists will have you dropped from AMC and lender eligibility lists.

●     FREA’s call to action for banks and Fannie Mae to review the use of blacklists and do away with the “guilty until proven innocent system” currently in place.

Top takeaways for this episode:

1.    Appraisers should question why their data is used against them instead of as a tool for them to improve their work product.

2.    Taking precaution and practicing good risk management to avoid even Level 1 placement is the best strategy for avoiding the agency blacklist.

3.    Contact your Congressional office and advocate for that a formal review process is established, as blacklists could potentially put you out of business.

Resources for this episode:

●     Have you been blacklisted? Join FREA today and get the help you need.

●     Stay informed with our Cornerstone Report Newsletter.

Now It’s Your Turn

Did you enjoy this episode of Cornerstone Report Radio? Then we’d love for you to head over to iTunes and leave a review.

About Cornerstone Report Radio with Brian Trotier

Cornerstone Report Radio was created for real estate professionals like you who want easy access to information when you’re out in the field. If you don’t have time to read a lot of articles and blog posts, these short, 10-minute episodes will give you the information you need to stay up to date on trends and issues that affect your work and your livelihood.

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