SPECIAL SECTION: THE STATE OF APPRAISALS & VALUATION
Photo by Kristen Prahl
The Changing Landscape Of The Real Estate Appraisal Industry Adopting the right appraisal technology mission critical BY PAUL DOMAN | SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL
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he COVID-19 pandemic is changing life for everyone and disrupting entire industries–including the real estate appraisal industry. Traditionally, the appraisal industry has been high touch. Appraisers pride themselves on being thorough and accurate, lenders want to ensure that the property valuation is adequate to cover their risk and complies with regulations, and the government-sponsored enterprises (GSEs) have defined standards that often necessitate an interior inspection. This results in a large portion of home inspections being done on-site, inside the home and
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often, in the presence of the borrower. Suddenly, we are in a period where social distancing is required with no definitive end date. This new state of business is causing disruption across the real estate lending markets. Both the GSEs and lenders are working to quickly adapt their policies and procedures to keep business flowing. This includes changes as to how appraisals are conducted. As a lender or an appraiser, your ability to adapt to these changes is critical for both current and future success. This means keeping pace with evolving regulations, embracing new technologies, and adapting both your processes and mindset.
| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE
KEEP PACE WITH EVOLVING REGULATIONS Over the past two years, the GSEs have been working on appraisal modernization guidelines. These projects, while stalled in the shortterm due to the pandemic, are likely to resume with renewed intensity post-pandemic. The outbreak is bringing to light the critical role that desktop appraisal technology could play in keeping the mortgage industry running smoothly, in both good times and bad, if the GSEs allow for desktop appraisals on more loan types. Under the revised GSE appraisal guidelines announced in April 2020 to directly address the social distancing
