Appraisals: the challenges ahead
The rules, which went into effect May 1 for all conventional, single-family loans destined for sale to Fannie Mae or Freddie Mac, prohibit mortgage brokers and real estate brokers from ordering appraisals and require that lenders erect a firewall between loan production staff and the appraiser. Sounds reasonable. After all, the appraiser is there to assure that the lender's funding decision is sound, right?
Since the rules took effect, however, they've set off a firestorm of protest around the country. Appraisers say the HVCC threatens their livelihood, leads to low-quality appraisals, and increases the cost to consumers. Their ire is focused mainly on large appraisal management companies (AMCs), which they say are unjustly benefiting from the rules. Real estate brokers and salespeople say the rules are delaying closings and killing deals.
Make sure you have a realtor who knows their business!
Call me at 713-942-6851.
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