Master Engagement Agreement for Appraisal Services

 

Parties:

This Agreement is made between

Valuation Management Group, LLC located at 1640 Powers Ferry Road Bldg. 15, Suite 100, Marietta, GA 30067 ("VMG"), and

the appraiser who acknowledges the Agreement below (“Appraiser”)

on the executed date below (“effective date”).

 

1. Appraisal Services. VMG from time to time may request Appraiser to perform services described in a subsequent separate request, order, engagement letter, or other similar written manner of engaging the services of Appraiser under the terms and conditions of this Agreement and under the terms and conditions of the individual engagements.

2. AMC State Registration. VMG’s current State AMC license numbers  can be found on our website www.valuationmanagementgroup.com/resources.

3. Appraiser License. Appraiser warrants and represents that Appraiser (and as applicable, assistants and subcontractors of Appraiser) have the ability, experience, geographic competency and required and appropriate licenses, permits, and certifications to perform services related to this Agreement and individual engagements of services. VMG may require Appraiser to furnish proof of licenses at any time. Appraiser agrees to immediately report to VMG any disciplinary action, revocation, cancellation, non-renewal, voluntary forfeiture, lawsuit against or other similar actions related to licenses that limit or reflect on the ability to perform appraisals in any State, district, or territory, and agrees to report to Property Interlink actions by other entities, including without limitation GSEs, HUD, FHA, and lenders, that limit ability to perform appraisals for lending related purposes. Such reporting by Appraiser must be in writing to VMG upon discovery or knowledge of such changes.

4. Information Provided. The Appraiser certifies that information communicated by Appraiser regarding coverage areas and geographic competence, product knowledge and competence, experience, work samples, qualifications, licensure, and all other information provided to Property Interlink on Appraiser’s application and all other documents and communications are factual and correct.

5. Compliance with Laws and Rules. At all times while performing services pursuant to this Agreement, Appraiser (and as applicable, assistants and subcontractors of Appraiser) will comply with and perform assignments in accordance with the Uniform Standards of Professional Appraisal Practice, Appraisal Independence Requirements under Dodd-Frank and related rules and regulations, Fair Housing Act, Real Estate Settlement Procedures Act, Truth in Lending Act, Freddie Mac, Fannie Mae, FHA and all other federal, state, and local laws, rules, standards, and codes that are applicable to Appraiser.

6. Background Checks. VMG may require Appraiser to submit criminal background checks, drug screenings, and/or credit checks in accordance with applicable laws.

7. Performance of Services. Services under this Agreement must be performed by Appraiser or assistants supervised by Appraiser within the limits of applicable laws and the USPAP. Appraiser may not subcontract assignments without express prior written permission from VMG. Appraiser is not prohibited from retaining secretarial, clerical, or data-entry personnel.

8. Code of Conduct and Professionalism. In all cases when performing services, Appraiser (and as applicable, assistants and subcontractors of Appraiser) will

  • maintain an appropriate and professional dress code,
  • respect borrowers’ and contacts’ time and property,
  • act and communicate in a  respectful and appropriate manner toward all individuals,
  • not discuss the value or appraisal fee with the homeowner/borrower or any other persons other than VMG staff unless explicitly allowed by state or federal laws,
  • not use or disclose proprietary or confidential client information, except for the purpose for which it was provided,
  • quickly accept/schedule the appointment and update the website,
  • deliver the appraisal report to the VMG website no later than the due date,
  • notify VMG in advance with reasons if delivery should be delayed,
  • deliver UAD compliant appraisal reports and non-UAD, as requested/required, in MISMO 2.6 XML or ENV format to our website as applicable,
  • make the required revision changes in a timely manner as requested,
  • understand substandard appraisal quality and service will impact the future assignments received, as VMG scores Appraisers based on quality, turn times, and responsiveness, and
  • adhere to state, federal, and all applicable laws, rules, and regulations.

9. Indemnification. Appraiser indemnifies VMG for the acts or omissions of Appraiser only. Appraiser will hold harmless and indemnify VMG, its directors, officers, employees, agents, and representatives, and any client of VMG for whom a service is being performed, against all loss, liability, penalty, damage, expense, cost, including attorney’s fees of any kind, to person, property, or both, arising out of any action or inaction of the Appraiser only, related to this Agreement, including without limitation non-compliance with applicable laws and regulations. Appraiser is not responsible for acts or omissions of VMG or a VMG client.

10. Confidentiality.

1. Information may be provided to Appraiser that is “Confidential Information”, which is information that is proprietary, private, or confidential to VMG or its clients including but not limited to non-public personal information related to consumer and/or customers of VMG’s clients. Confidential Information is not information that is otherwise available to the public, was already known by Appraiser (with written evidence) at the time of disclosure of that information, was or becomes available to Appraiser from a source other than the owner if the source would normally be legally allowed to share the information, or Appraiser independently develops the information.

2. Appraiser agrees to keep Confidential Information with strict safeguards, to not copy, reproduce, sell, market, license, transfer, or give Confidential Information to third parties, and to use Confidential Information only in a manner appropriate for the purposes of completing the services under this Agreement. Appraiser agrees to protect the security and confidentiality of all non-public personal information in accordance with the Gramm-Leach-Bliley Act (GLBA) and other applicable laws, regulations, and rules related to the confidentiality of information.

11. Insurance.

1. Appraiser shall at all times under this Agreement maintain professional liability insurance (aka, E & O Insurance) covering damages arising from the services delivered by Appraiser under this Agreement. Appraiser’s E & O Insurance shall have a minimum liability limit of $500,000 per claim and $1,000,000 in aggregate for all claims (or the per-claim and aggregate limits required by law, whichever are greater), and be issued by an insurance carrier having a Best’s Financial Strength rating of A- or better. The E & O Insurance policy shall not contain a “regulatory agency exclusion” or any other exclusion for defense or damages relating to claims arising out of failed financial institutions or claims made by the Federal Deposit Insurance Corporation or any other state or federal regulator or insurer of banks, mortgage lenders, or other financial institutions. Any exceptions must be requested in writing and approved by VMG prior to acceptance of assignment.

2. Under this Agreement, Appraiser will have the E & O Insurance provider provide a certificate of insurance coverage evidencing Appraiser’s current E & O Insurance and providing for 30 days advance notice of cancellation or termination to VMG.

3. Appraiser may change insurance carriers, but must keep prior acts or retroactive coverage covering the dates under which services were provided to VMG.

4. Appraiser must maintain coverage or have extended reporting period coverage (or “tail coverage”) for a period of 3 years after Appraiser’s last service for VMG.

12. Termination and Survival.  VMG and Appraiser have the right to terminate this Agreement at any time with written notice. In the event of termination, VMG will be liable to Appraiser for undisputed fees for completed services rendered up to the date of termination. In the event of termination, the following three sections survive and remain in full force and effect: Indemnification, Confidentiality, and Insurance sections. VMG may terminate this Agreement and consequently not select Appraiser for future engagement if Appraiser fails to meet any terms of this Agreement (or individual assignment engagements); in such cases, VMG will provide written notice to Appraiser, identifying the reasoning and describing a rebuttal process as follows:

VMG provides all appraisers a list of responsibilities and expectations at application and instructions are submitted at each assignment. It is the appraiser’s responsibility to ensure they are able to meet all requirements prior to accepting an assignment.  VMG’s disciplinary process involves these steps generally:

Complaint of appraiser is made by borrower, client, and or VMG staff. 

Complaint is escalated to Lead Reviewer for review of work. 

 If complaint is deemed valid, appraiser is suspended from being offered new assignments during the due diligence process.  Value is not a valid complaint for removal.  Partial list of valid claims include the following:

  • Violation of USPAP
  • Non-Compliance with the Appraiser Independence Laws or Regulatory Requirements
  • Not personally inspecting subject 
  • Incomplete appraisal reports
  • Consistently substandard and poorly supported value analysis and reconciliation
  • Unprofessional conduct
  • Multiple instances of missing due dates and deadlines
  • Lack of response
  • Failure to maintain an appropriate and professional dress code

During the due diligence process VMG will investigate and document the complaint in writing.

If investigation does not warrant removal, but a corrective action is needed, a disciplinary letter will be mailed to the most current address on file. 

If investigation warrants removal from VMG’s appraisal panel, a letter of notice will be mailed to the most current address on file. 

The appraiser will have 10 days to respond to the disciplinary letter in writing via fax, email or USPS to the complaint.  If no request for reconsideration is filed the appraiser will be removed from VMG’s approved panel and placed on a “Do Not Use” list.

If the offense requires notification, VMG will complete and submit a “State Appraisal Board Complaint Form” and submit to the respective agency. 

13. Competency. By accepting this written Agreement, Appraiser certifies that Appraiser satisfies the Competency Rule of the USPAP and will ensure and certify for each assignment accepted that Appraiser 

- is competent in appraising the property type of a subject property,
- is competent in the geographic area in which a subject property is located,
- has access to appropriate data sources that are necessary for the assignment,
- will immediately notify VMG if Appraiser later determines he or she is not competent, and
- is aware that misrepresenting his or her competence may be subject to mandatory reporting by VMG.

14. Appraiser Independence. VMG manages the appraisal process from inception to final completion. Our goal is to obtain quality appraisals by proven professionals in a reasonable time frame. Appraisers will not be influenced for a value. We want to ensure the appraisal process is free of undue influence.  We are committed to providing a process through which our clients receive an appraised value developed by trained experienced professionals who utilize independent judgment and adhere to all requirements established by federal and state guidelines, Interagency Appraisal and Evaluation Guidelines, etc. 

15. Undue Influence. VMG strictly abides by appraiser independence.  If any person(s) associated with any service managed by VMG is in violation a Toll-Free number is provided to issue an Influence Complaint or a complaint may be made by email.  All complaints are recorded and investigated.

Toll Free HOTLINE: 877-836-7163 Email: hotline@valuationmanagementgroup.com

16. Compensation. Fees for individual assignments will be disclosed and agreed upon at the time of engagement. Acceptance of assignment concurs that the fees are reasonable and customary. By accepting this written Agreement , Appraiser understands and agrees payments for work performed will be submitted as published and updated annually under VMG’s National Appraisers Payment Schedule on the VMG corporate website at www.valuationmanagementgroup.com/appraisers .  Completion date is the date Appraiser delivers to VMG the final completed appraisal report that meets requirements of the engagement (or as required by law or rule).  Payment date is the date Appraiser’s specified bank account will receive direct deposit payments from ACH. Obtain the ACH authorization form online at www.valuationmanagementgroup.com/appraisers/documents or by contacting accounting@vmgappraisals.com. Since VMG will pay Appraiser, Appraiser will not invoice or collect funds from the lender or other parties.

17. Independent Contractor. Appraiser will act solely as an independent contractor in the performance of its services under this Agreement, and nothing contained or implied herein shall at any time be construed to create a relationship of employer and employee, partnership, principal and agent, or joint venture partner between Appraiser, VMG, or any client of VMG.

18. Agreement. This Agreement (including any exhibits, addendums, attachments, or similar engagement or communications) supersedes any and all oral or written agreements as to the subject matter of the agreements. This Agreement may be changed only in writing accepted by both parties.

19. Acceptance. VMG’s delivery of a request for Appraiser to perform services as described in a separate request, order, engagement form, or other similar manner of engaging the services of Appraiser after the effective date by VMG indicates Appraiser’s acceptance of this Agreement.

20. Severability. If any provision in this Agreement is found invalid or unenforceable, the remaining provisions will continue in full force without being impaired or invalidated. Headings are for reference purposes only and in no way define, limit, or describe the scope or extent of sections.

21. Governing Law.  This Agreement shall be governed and interpreted in accordance with the laws of the State of Georgia.

22. Amendments and Changes.  This Agreement may be changed by written or electronic methods, including without limit acknowledgements via a website or portal.

23. Acknowledgments.  By accepting this written Agreement, Appraiser acknowledges that all appraisal assignments completed by me on behalf of Valuation Management Group must  conform  to  generally  accepted  appraisal  standards  as  evidenced  by  the  Uniform  Standards  of Professional Appraisal Practice (USPAP) promulgated by the Appraisal Standards Board (ASB) of the Appraisal Foundation. I understand that complete compliance with Dodd-Frank Act, FHA Guidelines, Freddie Mac, Fannie Mae, Federal and State Laws, Interagency Appraisal and Evaluation Guidelines, and GLBA are required.  I acknowledge that I have received, read, understand and accept responsibility for complying with the Appraisal Requirements and Appraisal Independence.

Appraiser also acknowledges that the answer to the following statements is true:

  • Neither the Appraiser nor anyone in its firm has been involved in a lawsuit either pending or resolved.
  • Neither the Appraiser nor anyone in its firm has ever been disciplined by a state appraisal licensing agency or professional organization.
  • Neither the Appraiser nor anyone in its firm has ever had a claim filed against Errors and Omissions Insurance. 

If any statement is false, Appraiser will explain circumstance in an email to apps@vmgappraisals.com.

I hereby authorize Valuation Management Group to check my references and verify any of the provided data. 


This Agreement is executed by Appraiser and VMG, via physical or electronic signature below or via electronic website/portal acknowledgement.