Archive for April, 2011
eMortgage Logic is adding a collateral assessment report to its automated valuation model evaluations to adhere to the recently implemented interagency appraisal guidelines.
The Federal Reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corp., the Office of Thrift Supervision and the National Credit Union Administration jointly filed the Interagency Appraisal and Evaluation Guidelines, with the Federal Register in early December. The Dodd-Frank Act passed last summer cleared a replacement of the Home Valuation Code of Conduct to govern appraisals for both Fannie Mae and Freddie Mac.
The collateral assessment report is compiled by a broker in eMortgage Logic's nationwide network. It includes photos, an external evaluation and other local market data relevant to the appraisal. Each report can be customized to the specific needs of a company depending, EML said.
The report runs as a supplement to an AVM appraisal provided by the Fort Worth, Texas-based company.
Ralph Sells, president and CEO of eMortgage Logic, said offering an appraisal tool with flexibility and customization helps professionals in the mortgage industry easily adapt to new rules and regulations.
"Adaptability to changing markets and changing needs is paramount in today's environment, especially with such a rapidly evolving landscape," Sells said. "Lenders and servicers are expected to adapt in short order to the new regulations with very little direction or guidance while being held responsible for compliance of these requirements."
Appraisers and appraisal companies are also being forced to quickly update their processes and procedures due to new regulation. While some companies are integrating valuations done by an actual appraiser, appraisers too are required to provide an automated valuation to supplement their work.
Many in the industry are reluctant to embrace changes in the profession, especially with regard for technology. But George Heredia, vice president and chief appraiser at eMortgage Logic, told HousingWire in a recent interview that change is inevitable for the appraisal profession to survive the current housing crisis.
"I see the profession still intact, albeit a bit shattered and bruised," Heredia writes in a commentary about the profession. "But that has not always been a result of outside forces and much of our profession's ills are due to our own inability as appraisers to grasp market and business changes, embrace new technologies and have a collective voice at the highest levels of government. "
Take a more in-depth look at the changes facing appraisers and the industry as a whole in the May edition of HousingWire magazine.
Write to Christine Ricciardi.
Follow her on Twitter @HWnewbieCR.
