There are 95 Collateral Underwriter messages that affect appraisers, and the majority are the same issues they’ve dealt with for years. So yes, there will be an adjustment period as with any change, but end times are not near.
In our experience with numerous lenders and AMCs, appraisal quality assurance is typically one extreme or the other: too manual or too automated — both leading to inconsistent or ineffective results. If any of these 10 warning signs sound familiar, it’s time to implement a procedural change for compliance and a defensible position that results in better lending decisions.
In the past year, we’ve seen several announcements and compliance deadlines on the same topic: The importance of appraisal quality assurance. In an environment with so many new requirements and market challenges, it’s not surprising many lenders are afraid they’re not keeping up with all the regulations.
Saddled with legacy systems and burdened with changing regulations, the mortgage industry has been slow to adopt digitization compared to many other industries. Now, however, the industry must provide more transparency to regulators and satisfy consumers while managing tighter margins. In this perfect storm, there’s only one lifeboat — a digital process.
Has the Great Recession launched a new era of renting versus buying that will eventually result in a nation where more people rent their homes than purchase them? Or is the increase in renters these days due to an “over-correction” in the market? According to the latest “State of the Nation’s Housing” report from Harvard’s Joint Center for Housing Studies, the U.S., in less than a decade, lost all its homeownership gains of the last 20 years.
Armed with an overall measure of housing market performance relative to long-term trend; an accompanying metric explaining whether that market is overheated or not; and importantly a way to attribute deviations in home prices precisely to selected market variables, market participants would be in a better position to take precautionary actions to limit their exposure in highly volatile markets.