I was just part of the latest 4realz Roundtable hosted by Dustin Luther and featuring Jonathan J. Miller, an appraiser from New York. This discussion is about the upcoming changes with how conforming appraisals will be ordered, which I wrote about earlier this year at Rain City Guide. I was planning to be a fly on the wall…but Dustin wouldn’t have that! Jessie B. from Retro.com was also active on the panel.
This will impact any conforming (Fannie/Freddie) mortgage and I really don’t see ANY benefit to this new procedure that is scheduled to begin on January 1, 2009. If this goes into effect, appraisals will be ordered from an "appraisal management company" instead of from a mortgage broker/loan originator. It’s my understanding that even though this change has come about from NY’s Attorney General Coumo suing Washington Mutual and eAppraisal, banks like WaMU will not be impacted. (Am I the only one who finds this ironic?).
My take on this is that appraisals will take longer and will have less quality if they are ordered via a pool (very similar to VA appraisals).
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