Bothell, Washington
September 10, 2009

American Reporting Company (ARC) has recently been audited by RSM McGladrey on its appraisal management practices in accordance with Appraisal Independence Standards and the newly mandated Home Value Code of Conduct (HVCC)

 “We felt it was necessary to be pro-active and lead by example.  Both Interagency Guidelines and HVCC clearly state that institutions must have safeguards in place if they choose to use a third party vendor.  We wanted to provide assurances to our clients that we are fully compliant.  We have been following the spirit of these Appraisal Independence guidelines for over 5 years.  RSM McGladrey has further confirmed our efforts to follow these guidelines.” Francois Madath, President ARC

Specifically the audit encompassed the following procedures:

·         ARC’s written policies and procedures to verify overall compliance with the HVCC
·         Review of the appraiser scheduling and assessment processes
·         Appraiser selection/termination process
·         Appraisal performance review and independence requirements
·         Appraiser monitoring and quality control
·         Employee training

In 2005, ARC invested in a robust technology solution that adheres to the new HVCC guidelines, along with a great staff that is knowledgeable in real estate appraisal practices. This combination of appraisal experience, technology and regional focus allows ARC to deliver a perfect solution for clients who are looking to outsource their appraisal services.

Results

“We concluded the Company has fully embraced the spirit of the HVCC and has implemented all aspects of the HVCC into their operating environment. We found the Company to be in full compliance with the HVCC in every pertinent aspect of the HVCC, including Appraiser Independence Safeguards, Borrower Receipt of Appraisal, Appraiser Engagement, Prevention of Improper Influences on Appraisers and Independent Valuation Protection Institute.” – RSM McGladrey

Effective May 1 2009, Fannie Mae and Freddie Mac agreed not to buy loans unless banks, credit unions and direct mortgage lenders prove they ordered appraisals from independent parties who will provide objective valuations. As a result of these new guidelines, documentation of the appraisal process is as critical as documentation of the loan process. Appraiser independence, compliance to USPSP standards, documentation of appraiser performance and disclosure changes must now be evidenced and documented under the Home Value Code of Conduct. (HVCC)

About RSM McGladrey

RSM McGladrey is a leading professional services firm providing accounting, tax and business consulting. RSM McGladrey operates in an alternative practice structure with McGladrey & Pullen LLP, a partner-owned CPA firm that delivers audit and attest services. Through separate and independent legal entities, they work together to serve clients’ business needs. Together, the companies rank as the fifth largest U.S. provider of accounting, tax and business consulting services (source: Accounting Today), with 8,000 professionals and associates in nearly 100 offices. RSM McGladrey and McGladrey & Pullen LLP are member firms of RSM International, an affiliation of independent accounting and consulting firms. RSM McGladrey is the official accounting, tax and business consulting firm of The PGA of America.

About ARC

American Reporting Company specializes is providing settlement services to the mortgage lending communities. Founded in 1986, ARC was traditionally known as a premier credit reporting agency but expanded their product offering to include appraisal services, escrow and mortgage lending education. In both 2007 and 2008 ARC was names to INC’s Fastest Growing Companies List.