2011 Loan Originator Survey – Appraisals

Originators today have less leeway to select the appraisers with whom they work. Some are concerned with the values delivered by automated valuation technology tools.

Half of those surveyed said that they select appraisers through a company-approved appraisal management company.

More than a quarter use a company-managed appraisal panel.

Another 17 percent use an AMC approved by the investor, while just 5 percent use appraisal management software.

Here are some comments from the survey responses.

• MLO should have the ability to determine home values via conversation or contact with an appraiser in the market to determine current values rather than relying on AVMs which are grossly inaccurate and very poor indicators of market values.

• AVM Program is creating downward spiral in home values, putting pressure housing market and resulting loan production.

• Appraisal process is horrendous