The interagency guidelines, state that it is the lender's responsibility to monitor appraisal management companies and their ability to meet the agency guidelines as well to document appraisal quality control. This can be done by allowing Quality Mortgage Services to manage the mortgage bank's appraisals and apply Appraisal Defect Detection and Prevention (ADDP) on all appraisals.

Quality Mortgage Services relies mostly on Field Review Appraisals which are a required 1% of total loan sampling or 10% sampling of the files that receive post closing QC. Desk Review is the most common appraisal review performed - mostly used by underwriters. Desk Reviews on appraisals are the first line of compliance that will usually trigger other appraisal reviews such as an Automated Valuation Model (AVM), and Field Review Appraisal.

HVCC requirements include quality control testing of additional retroactive appraisal reports, a random sampling of either 10% of all appraisals or another bona fide statistically significant percentage, or valuations that are used by the lender, including all the valuation types listed above. The sample is considered a bona fide statistically significant sample if the sample is representative of the population, and inference and conclusions made from the sample can be extended to the population as a whole.

Quality Mortgage Services provides the HVCC Section VI review as required. These quality controls include but are not limited to Chapter 48 of the Freddie Mac Seller's Guide.

The quality control review must be performed on the valuation method that was used for determining the loan-to-value (LTV) for the transaction.