R3 AMC, a full-service Appraisal Management Company (AMC) focused on helping lenders efficiently navigate the appraisal process, launched an insured appraisal solution, Val-Insure*, for both overvaluation inaccuracies and undervaluation due to appraisal bias and related regulatory and legal claims. This unique program combines mandatory bias training with enhanced errors & omissions (E&O) insurance to safeguard stakeholders.
“We developed this comprehensive solution to help protect lenders, appraisers, and R3 from claims of appraisal bias,” said Brent Jones, CEO, and Chief Appraiser at R3 AMC. “Bias has no place in the appraisal process. Our goal is to ensure, through education and quality control, that we have done everything we can possibly do to maintain the public’s trust. While for an appraiser, being accused of being biased is unthinkable, we are going to be there in case it occurs.”
Val-Insure includes three components to address and mitigate risk: education of appraisers delivering covered appraisals to reduce bias and discrimination; review of covered appraisals for potentially discriminatory content; and insurance coverage that protects against losses caused by claims of bias or discrimination.
Bias Training Systems, a subsidiary of R3, is the preferred training provider for Val-Insure. Conventional and FHA loans are covered under this program. The policy is underwritten by Hallmark Financial Services, a multi-line national property and casualty insurer. Unitas Financial Services serves as the managing general underwriter, and SSP Insurance Services acts as the originating broker.
“By combining R3’s policy with concise, practical, and high-impact appraiser training, we are confident R3 can help lenders satisfy risk mitigation requirements,” said Dan Streit, Owner of SSP Insurance Services.
Tony Garritano is the founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 20 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting PROGRESS in Lending Association was the next step for someone like Tony, who has dedicated his entire career to providing mortgage executives with the information that they need to make informed technology decisions to help their businesses succeed.