According to a Fannie Mae study released in mid-May, mortgage lenders find benefits in appraisal modernization, particularly in introducing non-traditional appraisals and inspection-based appraisal exemptions. However, when it comes to what they are investing in, they have a few more important considerations.
94% of the 200 senior mortgage executives polled, representing 188 lending institutions, believe that appraisal modernization efforts will make the origination process easier. According to the first-quarter sentiment survey, the key benefit of appraisal modernization is that it will assist cut the loan origination cycle time.
According to the lenders polled, modernizing appraisals might improve appraiser capacity and cut borrower expenses. Due to a shortage of appraisers in the field and stringent entry standards, lenders claim that appraisers are limited in the number of properties they can visit. Desktop appraisals would assist in reducing this problem.
Even though the housing industry’s appraisal modernization initiatives have increased because of the pandemic, lenders have expressed worries and barriers to implementing new appraisal modernization techniques. Lenders have identified major hurdles, including industry implementation pace (or lack thereof) and integrating these technologies with loan origination processes.
Hybrid evaluations were declared permanent by the Federal Housing Finance Agency (FHFA) in March 2022. For purchase loans, Fannie Mae and Freddie Mac now allow appraisals to be performed remotely utilizing public sources such as home listings and tax appraisals. Despite these advantages, the willingness to engage in appraisal modernization came in third, with 29% of lending institutions saying it was a top-of-mind investment. To read more on modernized appraisals and the benefits for the lending business, click here
https://www.housingwire.com/articles/lenders-see-appraisal-modernization-as-a-top-priority/
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