Is an appraiser shortage slowing down appraisal turn times?
Many reverse mortgage professionals are reporting longer turn times between an appraisal order and completion and they’re not alone. In fact, traditional mortgage professionals are facing the same challenge. Naturally, the question one asks is why? But the answer may not be quite as simple as one would think.
To get a clearer understanding of what is really happening we interviewed John Dingeman. John is the Chief Appraiser for Class Valuation…
Freddie Mac Report: Spotlight on Appraiser Capacity During the Pandemic
4 Comments
Appreciate you Shannon for your tireless efforts with the industry and also much appreciation to John for coming on your show. I did think I was listening to the typical spin from our politicians. It’s not a shortage issue, but capacity??? Mr. Dingeman has certainly learned how to pivot. Another statement I found interesting is it’s up to the appraiser and borrower to work together…to what? help with the capacity issue? Plain and simple…there’s a shortage!
My office is in Granite Bay, CA. Appraisals within the Sacramento region don’t have delay’s, but appraisal’s ordered in more rural areas can take up to 20-25 days and cost roughly $200 more then within the metro community.
Oregon changed the requirements for appraisal licensing a few years ago. They changed the law to state that an appraiser has to have a 4 year degree instead of the prior law requiring a 2 year degree. This created a drop out of a lot of folks in the apprenticeship and on their way to being appraisers. They did not change the apprenticeship time, just the education requirement. This eliminated a lot of folks in the apprenticeship program and stop new applicants that did not have a 4 year degree. As far as I can tell this was just a self serving move to restrict the number of available appraisers.
Dallas Texas area – reverse mortgages seem to come in lower for appraised value over my conventional forward refinances.
I recently had a very bad report from an appraiser who was way too old to be doing appraisals. He’s was an elderly appraiser – I believe he came out of retirement to capitalize on this $$ market.
Investor will not challenge the report ( ROV ) even thought the appraiser forgot a bathroom & made several other mistakes.
Now fair to this borrower.
H E L P
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