Jul 27 2010

Appraisal Changes, Finally

Published by at 5:01 am under General Information

Finally, some relief and corrections are in place to help us with appraisers.  SEL-2010-09, “Selling Guide Updates and Additional Guidance on Appraisal-Related Policies.”

The new requirements and clarifications resulted from “Fannie Mae’s post-purchase reviews of mortgage loan files [that] have identified issues with appraisals.”  A number of the items addressed in this announcement have also been subjects of concern to Realtors® during the past couple of years.

The following instances are to now be curbed or prohibited entirely. Changes to prevent these occurances are welcomed. 

Lenders changing the value that had been determined by the appraiser.

The selection of appraisers who were not familiar with the marketplace in which the subject property was located and/or who did not have access to all the data bases containing information relevant to the local marketplace. 

The use of short sales and foreclosures as comparable sales without giving sufficient consideration to the condition of those properties. 

The inability of either Realtors® or the lender’s representatives to communicate with the appraiser.

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