SimQual Blog

Image via Wikipedia

I hear a lot of complaints about HVCC and appraiser independence from broker and lenders:

• Appraisals are taking longer
• They cost more
• I don’t want to use that appraiser
• I don’t like the values
• I can’t talk to the appraiser

Then I hear the appraisers view:

• I’m not making as much money
• I am not getting paid as quickly as I used to
• Changes are frustrating
• There is no one to call when you have a question or there is a problem

Frankly, they are all true. Under the new guidelines appraisals do take longer, they do cost more, the broker / lender cannot pick the appraiser, and the appraiser does not get paid as much. It sure is a different way to get the job done.

Appraisals have been ordered and controlled by loan originators for a long time. It seems that most complaints and issues people have about the new system has more to do with the expectations that come from working in the old system for so many years. Brokers / Lenders expect certain things based on what is good for them and what they are used to. Appraisers expect certain things based on what is good for them and what they are used to.

The best way to get on with the business at hand is to update our expectations of the appraisal process post mortgage meltdown. Once that is done we can all set about making some changes to smooth out the process and address some of the flaws.

Appraiser Independence is a new concept in the mortgage business and it is good for the consumer and the industry as a whole. Truer values, a smoother process, and more long-term  value to the consumer as well as Wall Street will benefit everyone.