Ask any Realtor or lender, and they’ll most likely complain about the new regulations surrounding appraisals. Ask any appraiser, and they’ll likely complain as well. This NY Times article does a great job of explaining how legislation whose goal was to eliminate collusion between appraisers, lenders and brokers, has instead significantly complicated the appraisal process by bringing management companies into the mix, while in turn charging consumers more for what is often an appraiser who is less qualified or experienced than what they would have had in the past.
I’m all for appraisals being performed at arm’s length from lenders, but it seems the addition of management companies has been a lose – lose situation for consumers, brokers and lenders. I believe there should be some sort of qualification process for a pool of appraisers, certifying that they are knowledgeable of a particular market and product type. Under the new rules, consumers are paying about 40% more for an appraisal which is often sourced out to an appraiser with little experience or knowledge of the submarket in which the property is located.
http://www.nytimes.com/2009/08/19/business/19appraise.html?pagewanted=1&_r=1&th&emc=th
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