Monday, January 10, 2011

Viewpoint: Home Appraisal's Communication Gap

Viewpoint: Home Appraisal's Communication Gap
By Jennifer E. Schnell, an appraiser

From American Banker, Dec. 30, 2010

"With more focus being placed on the quality of appraisals and rapidly changing federal compliance regulations, appraisal management companies are being forced not only to keep up with and comply with the latest regulations, but to adhere to the special instructions requested by individual lending institutions, leaving them with a lengthy to-do list per appraisal.

However, when lenders submit meticulous lists of things they expect from comparables, it sometimes becomes difficult for the appraiser to meet all these demands.

Demands that generally mirror Fannie Mae guidelines are easily met in some markets. In other markets those guidelines cannot be met. When a guideline cannot be met, it's the appraiser's responsibility to explain to the reader of the report the reasons for not meeting a specific guideline.
Too often appraisers claim they're surprised by special instructions after they have completed their analysis and filed their report. This should never happen!

While it is the appraiser's job to identify the intended use and the intended user and all the special instructions before they accept an assignment, the lender must be as specific in its instruction as it would like the report to be."

Click here to read the entire article

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