Generally Accepted Appraisal Rules™ (GAAR®)
Automated Appraisal Review for Compliance and Risk: Faster, More Consistent Review and Risk Mitigation
For the first time ever, appraisal reviewers and underwriters can use state-of-the-art technology to automate a thorough, in-depth review -- not only for compliance but also for underlying risk.
As an invaluable tool for detecting potential appraisal errors, GAAR technology:
- Simultaneously scans the fields on the appraisal form, alerting the reviewer or underwriter to inconsistencies and contradictory information.
- Produces an instant report of “red flags” prior to manual review.
- Provides a fact-based opportunity to investigate and clear the issues or reject the loan pre-funding!
Now with GAAR Viewer!
GAAR Viewer gives users an on-screen view of the appraisal report with any rule firings and related fields highlighted in red. Rule reference numbers and descriptions of potential violation are indicated at a glance.
GAAR automates appraisal analysis with an innovative, rules-based engine, providing a first-level comprehensive review of each appraisal. While other industry tools may check for completeness, GAAR checks for both compliance and risk. For example, the Uniform Residential Appraisal Report (URAR) has more than 500 unique rules which are all checked.
GAAR Compliance Series
The Compliance Rule Series screens appraisals for compliance with:
- Fannie Mae
- Freddie Mac
- FHA, VA, and more
GAAR Risk Series
The Risk Rule Series goes beyond regulatory compliance, identifying potential fraud as well as risky lending situations. GAAR Risk automatically flags properties that may be overvalued or deviate from the neighborhood norm.
The rules are continually monitored and updated based on reviews by clients and FNC subject matter experts and as the result of testing thousands of appraisal reports.
Exception Management for Appraisal Review
FNC’s Collateral Management System and GAAR minimize human touch points, allowing only exceptions to be handled by your knowledgeable appraisers and underwriters. With GAAR, you never have to touch the appraisal report unless the rules identify a potential problem—you’ll manage only the exceptions, which are flagged as possible violations. This saves you time and money.
Fraud Mitigation for Underwriting and Appraisal Review
GAAR also includes an external rules component which applies real market and property information to help decrease appraisal fraud. The purpose of this rule set is to verify the information within the appraisal, validate comparables, and provide additional market information about the subject property and its neighborhood. Additionally, price trend and momentum analysis help identify declining property values.
When it’s a question of compliance or risk, FNC’s CMS and GAAR have you covered.
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