Home / Daily Dose / Four States Face Serious Appraisal Problems
Print This Post Print This Post

Four States Face Serious Appraisal Problems

Four states are currently facing serious appraisal-related problems, according to a recent white paper from LRES. Oregon, Washington, Colorado, and Texas are dealing with appraisal report delays and appraiser shortages—both of which are worsened by recent upticks in population. It can take up to six weeks to receive an appraisal report in some parts of Washington and Oregon.

But while those are the hardest-hit states, the problem is wider spread than that. Lenders and agents are dealing with appraisal report delays across the country, and those delays are holding up closings, causing deals to fall through, and ruining lender-agent relationships, according to the paper.

“If lenders don’t receive an appraisal report in time to underwrite the loan to the satisfaction of the investor,” the paper stated, “they cannot close the loan in time to satisfy the contract, and the deal may fall through. In some cases, this may jeopardize the lender’s ability to secure the agent’s future business.”

The paper, titled “Effective Communication with Lenders to Alleviate Problems Caused by Appraisal Shortages,” offers a few solutions to tackle these appraisal issues, namely, working with—and communicating with—the right Appraisal Management Company (AMC).

The paper recommends lenders work with only AMCs that are proven, have a large team of appraisers from which to pull, produce quality reports, have stringent compliance standards, and are willing to share their historical turnaround times by state and county.

AMCs also need to do their share to properly communicate with lenders, providing realistic deadlines, alerting the lender of any delays or issues as early as possible, and offering accurate cost and delivery estimates.

According to Roger Beane, Founder and CEO of LRES, appraisal problems are causing hiccups at every step in the mortgage pipeline.

“The appraisal industry is currently suffering as it works to overcome challenges that are preventing new professionals from entering into the business,” Beane said, “and the entire lending cycle is suffering delays as a result. This white paper outlines ways to overcome these challenges and how effective communication greatly mitigates the risk of losing business.”

Read the full white paper at LRES.com.

About Author: Aly J. Yale

Aly J. Yale is a longtime writer and editor from Texas. Her resume boasts positions with The Dallas Morning News, NBC, PBS, and various other regional and national publications. She has also worked with both the Five Star Institute and REO Red Book, as well as various other mortgage industry clients on content strategy, blogging, marketing, and more.

Check Also

Average Homeowner Equity Exceeds $233K

Credit bureau TransUnion has released its second quarter Credit Industry Insights Report which highlighted how ...