Appraiser Independence and the Home Valuation Code of Conduct

IRR-Residential believes the ability of appraisers to independently estimate a property value is essential to maintaining the integrity of the mortgage system for the benefit of financial institutions and consumers. Accordingly, the company supports measures that prohibit collusion, coercion or intimidation of an appraiser to influence value. Values should only be based on the independent judgment of the appraiser.

Accordingly, IRR-Residential has established a “Hotline” for appraisers and borrowers to report instances where they believe appraisal fraud has been committed or where inappropriate or undue pressure has been placed upon the appraiser to render an over-valuation of a property.

Undue Appraiser Pressure

Appraisers who are completing work on behalf of IRR-Residential clients and are experiencing any of the following are encouraged to report such activities to IRR-Residential immediately.

• Undue and inappropriate pressure to achieve a valuation amount above the level as indicated by the market conditions from a representative of IRR-Residential or a representative of a client of IRR-Residential or any party tied to the transaction.
• Receive unprofessional behavior from a representative of IRR-Residential or a representative of a client of IRR-Residential.
• Any other appraisal or appraiser related issue which may be an ethical violation.

Appraisal Fraud

Likewise, appraisers, lenders and borrowers who believe they have been victims of appraisal fraud on transactions where IRR-Residential facilitated the appraisal are encouraged to report such activities to IRR-Residential.

• Appraisal Fraud is NOT subjective. It includes a material misrepresentation.
• Overvaluation of a property causes under-valuation of mortgage risk.
• Appraisal fraud requires an intentional, willing and knowing misrepresentation.

Reporting Appraisal Fraud and Undue Influence

Parties that believe that either appraisal fraud or undue appraiser pressure has taken place during an appraisal assignment ordered or completed through IRR-Residential are encouraged to contact IRR-Residential immediately at:

1. ComplianceOfficer@irr-residential.com, or

2. Call the IRR-Residential Hotline at 866-538-8936.

Sufficient information must be submitted, including IRR-Residential Order #, property address, details of the complaint and complaining party contact information.

THERE WILL BE NO RETRIBUTION TO A COMPLAINING PARTY FOR HAVING REPORTED A CLAIM.