SettlementOne Appraisal Services Warranty
Appraisal Services Warranty
Subject to the conditions set forth hereinafter, SettlementOne warrants that each appraisal report provided to [**COMPANY NAME**] (hereinafter referred to as the “Client”) complies with the Uniform Standards of Professional Appraisal Practice (“USPAP”), as published by the Appraisal Standards Board of Appraisal Foundation, as well as Fannie Mae and Freddie Mac appraisal standards and guidelines (the “Standards”).
In the event that SettlementOne provides an appraisal report which causes financial loss to the Client and/or its stakeholders as a direct result of a material violation of USPAP or the Standards in effect at the time of the appraisal inspection, Client shall be entitled to submit a claim of loss to SettlementOne subject to the following requirements.
SettlementOne’s Appraisal Services Warranty is subject to the following conditions.
The Client’s hereby agrees that the loan submitted for claim of loss adheres to the following requirements:
- The loss is due to foreclosure or surrender of deed;
- The appraisal was ordered and fulfilled through SettlementOne’s appraisal management service;
- The appraisal was fulfilled by a member of SettlementOne’s approved appraiser panel;
- The appraisal fully adheres to all requirements set forth in the Home Valuation Code of Conduct;
- The loan meets all published eligibility guidelines;
- The LTV is not greater than 100%;
- All reasonable efforts to collect or mitigate balance deficiency have been exhausted; and
- There is no evidence of fraud.
The Client hereby agrees to provide SettlementOne with all documentation and/or information requested to facilitate its prompt review and assessment of Client’s claim, including but not limited to:
- Written request with documented proof of loss, loss recovery efforts, and copy of the original loan file with all supporting approval requirements and terms;
- PMI recovery or denial amount;
- Copy of original appraisal report(s) for the loan;
- Copy of any REO or BPO valuations obtained during loss-mitigation efforts;
- List of defects (USPAP or Standards violations);
- Itemized calculation of loss incurred; and
- Total loss amount requested by customer under warranty.
SettlementOne’s Appraisal Services Warranty covers the following appraisals: FNMA 1004 – URAR, FNMA 2055 Exterior, FNMA 1073, FNMA 1075, FNMA – Multi-Family, REO Appraisal, Form 2006.
Requests for payment of loss under this warranty shall be made in writing to SettlementOne, accompanied by the required claim documentation. Upon receipt of the Client’s request for payment of loss and all information required pursuant to this warranty, SettlementOne has sixty (60) days to investigate the claim and confirm that such loss was caused by a defect in the related appraisal provided by SettlementOne. The Client shall cooperate and comply with all reasonable requests and inquiries made by SettlementOne. Upon completion of the investigation, SettlementOne will notify the Client of its findings. The total warranty amount covered by SettlementOne shall not exceed the total gross revenue received from Client by SettlementOne for services rendered under the Appraisal Management Services Agreement, or similar contract, during the calendar quarter immediately preceding the date Client submits its claim to SettlementOne for review.
If the Client disagrees with SettlementOne’s findings regarding whether the loss is covered by this warranty, SettlementOne and the Client agree to submit such dispute to binding arbitration, which shall be the sole remedy of the parties to resolve such a dispute. SettlementOne and the Client shall agree upon an independent appraisal review and arbitration process to reconcile the claim. SettlementOne’s appraisal warranty is effective for a period of four (4) years from the original date of the appraisal. Terms of this SettlementOne Appraisal Services Warranty may be updated from time to time as reflected at www.settlementone.com. This warranty shall be deemed invalid unless signed below by a duly authorized representative of SettlementOne and shall only be effective for appraisal services provided to Client by SettlementOne after the signature date listed below.