Minimize Appraisal Problems with Mortgage Trust
Posted On: July 2nd, 2009 by James Posted In: Government Actions • Mortgage Programs • Portland Real Estate
Good news and Better news! Mortgage Trust has developed our own ‘in-house’ Appraisal compliance system that has been approved by all of our major lender partners. What this means for you is that when you or your clients use Mortgage Trust for your purchase or refinance, your appraisal will be executed by one of our preferred appraisers, not some random appraiser who works on the cheap.
I have had literally ZERO value issues since this new guideline came into being as a result of our setup.
Our system only selects from a small pool of appraisers from whom we have a history of excellent work and service. We are compliant with the new rules by having the appraiser randomly selected by a computer and the appraisal ordered by a non-commissioned employee, and – we will have no contact with the appraiser throughout the process, and there will be no mention of value from our end at all.
I have also read that the National Association of Realtors, as well as the Mortgage Banking Lobby have been arguing in congress fairly convincingly that these regulations are having a hugely negative effect on the overall health of the real estate market. Nationally, most banks and brokers are really getting burned by these 3rd party “AMC” appraisal services turning in shoddy appraisals that make deals fall apart. I wouldn’t be shocked if this HVCC guideline gets repealed or eliminated completely later in the year. Stay tuned on this one.
This is great news. It seems that there are a variety of ways lenders can ensure appraisal independence and HVCC compliance. It is great to see approaches that fall outside of “outsourcing” appraisal managment.
It is also reassuring to see quality in your results. Thanks for the update and report of your experience!