Yesterday, in Part 1 of this post, I spoke of a first-time home buyer facing the dilemma of having to "adjust" her purchase offer on a home or walk away from the transaction. This home buyer found herself in this predicament because appraisers (and yes, I said plural) would not "adjust" their evaluation for the home.
As supported by the many comments I received regarding Part 1 of this post, this dilemma is not an isolated incident. It in fact is occurring in near epidemic levels in many areas of our country. There is good news regarding appraisals. There ARE changes coming for appraisers within the coming months, as directed by FannieMae and other powers-to-be.
According to what I read, as of January 2, 2012, appraisals made for Conventional Loan considerations, will now have a standardized, computerized rating for several "subjective" portions of an appraiser's report.
Those "subjective" items:
- Condition
- View
- Upgraded Features
- Quality of Construction
Now this might work well for the Subject Property (the one being appraised), but how will the Comparable Sales be rated?
If the appraiser doing the assignment has not personally inspected that Comparable Sale, how does that assessment occur? Primarily, based upon comments made by the Listing Agent in the Remarks Section of the Listing Sheet. Should the MLS (Multiple Listing Service) ratings not be upgraded/changed to now be in sync with the new Ranking System soon being implemented by Fannie Mae? Doing so would address (and possibly eliminate) the dilemma I referred to above and in my prior post.
Should this change be made to the MLS ratings, the apples to oranges comparison now taking place in many appraisals would be infrequent or eliminated.
I have many agents reading this post that are active, or in positions of authority, in local real estate boards. Maybe they can address what, if any, action is going to take place regarding these new appraisal changes occurring in January?
I plant the seed for thought. All branches of our industry must work in sync to address and fix the problems that are occurring in regards to appraisals. This specific issue can be addressed fairly easily. We CAN do something about it and be prepared for the upcoming changes ...
* Should you have questions or be in need of credit or mortgage assistance or service, please do not hesitate to contact me. I will be happy to assist you with your needs. I can reached at: Direct: 815.277.4036 Cell/Text: 708.921.6331 Email: gene@chicagobancorp.com Skype: 630.219.1316 Website: www.genemundt.com
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Gene Mundt, Sr. Vice President
Personal NMLS #216987
The Federal Savings Bank
1823 Centre Point Circle, Naperville, IL 60563
Now on Skype! 630-219-1316
