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We received a lot of responses to our article last month, where we talked about why lenders can’t request a specific appraiser (per Appraiser Independence Requirements [AIR]). Due to questions we received about that article, we’d like to dive a little deeper into the issue of appraiser independence. It can get complicated and confusing.
Over the last month or so, we’ve noticed an increase from LOs and Branch Managers asking that their appraisal order be assigned to a specific appraiser. It’s surprising how often we have to explain to a lender why we can’t do this.
The entire mortgage industry is still reeling from the historically low interest rates of 2020, which have generated record levels of refinancing. For lenders handling appraisals internally, how have the last few months gone? Have you been able to keep up with the demand for appraisals, even as some appraisers have turned down assignments due to concerns about COVID-19?
During this period of "sheltering-in-place" to COVID-19, each state’s orders regarding real estate appraisals have varied. Indeed, local jurisdictions including cities and counties have often had their own guidelines and regulations regarding whether or not appraisals are considered "essential" and whether interior as well as exterior inspections can be performed.
There’s a lot of fear, uncertainty, and anxiety in the world today. Personally, most people are concerned about themselves or a loved one catching COVID-19. Many people are worried about the economy and losing their jobs. And on the business front, there are unique concerns in the mortgage industry, such as new kinds of appraisals and new procedures prior to opening up a home for an appraisal.
Performing interior home appraisals with social distancing and shelter-in-place restrictions in place is a challenge. Some lenders are allowing desktop appraisals, while others are continuing to ask their appraisers to enter homes.
The ramifications of COVID-19 on the real estate and mortgage industries have been vast, ranging from record low interest rates to confusion over states’ varying “shelter-in-place” guidelines. Concerns over the virus have led to necessary creativity in the appraisal process.
In the event of natural disaster, pandemic or other disruptive issues, Triserv offers resources, appraiser continuity, and reliable services to ensure your appraisal process continues to move forward.
