Solving the Post-Close Challenge with Intelligent Automation

Join our upcoming webinar as SoftWorks AI CEO and Avanze CEO explore the advances in tech that allow for greater levels of automation and cost reduction, especially in support of post-close and pre-fund review.

Spruce’s Patrick Burns on innovation in title technology

In the season finale of Housing News season 5, Spruce CEO discusses heightened investor interest in title tech, innovation and fintech adoption.

The 100-years-war over real estate commissions

HousingWire plunges down the rabbit hole of residential real estate commissions, uncovering the past, present and future of this wholly unique part of the economy.

How borrower education can make housing more attainable

The current housing market is making it difficult for prospective buyers to afford a home. Housing professionals need to find ways to better meet buyer needs.

MortgageAppraisals & Valuations

Appraisers are worried about allowing banks to delay appraisals until 120 days after a mortgage closes

Think appraisal deferral could expand beyond bank portfolio loans

The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency surprised the mortgage business Tuesday evening when they announced that banks will soon be able to postpone getting an appraisal for 120 days after a mortgage closes.

The regulators said the change, which applies only to loans kept in a bank’s portfolio, is designed to expedite the process of getting funds to businesses and individuals.

Unsurprisingly, appraisers are concerned about the prospect of not being involved in the transaction until four months later. But that’s not their only concern.

As stated above, the appraisal delay only applies to portfolio loans, but several appraisers and appraiser groups told HousingWire Wednesday that they’re worried that the GSEs or the Federal Housing Administration could soon follow in the banking regulators’ footsteps.

“Appraisers play an important role for the housing market, especially during such an uncertain period where the market has changed dramatically over the past month,” Appraiser Ryan Lundquist told HousingWire.

“We are all making adjustments in life and business in light of the pandemic, but it’s important to let appraisers walk in their role as a system of checks and balances for the housing market,” Lundquist continued. “One of my concerns here is not so much this rule in itself, but whether this will serve to inspire the GSEs and decision-makers to back off using appraisers during this critical moment in the market. My sense is appraisers are ready and willing to work, so a ruling like this seems to be another example of a decision made without consultation from actual appraisers.”

The rest of this content is for HW+ members. Join today with a HW+ Membership! Already a member? log in

Most Popular Articles

Biden’s $15K first-time homebuyer tax credit now a bill

President Joe Biden called for a $15,000 tax credit for first-time homebuyers, and Congress has answered his call with a bill.

Apr 26, 2021 By

Latest Articles

What a dismal jobs report means for the housing market

April’s U.S. jobs report on Friday was dismal at just 266,000 new jobs, but economists say they’re not worried about the housing or mortgage market. HW+ Premium Content

May 07, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please