Earlier this year, desktop appraisals were made a permanent option for some loans. Even before the market slowdown, there was a remarkable level of appraiser receptivity to desktop appraisals. Some lending businesses’ views were already beginning to change due to the COVID-driven appraisal flexibilities, which hastened the implementation of performing appraisals from home.
Kenon Chen, Executive Vice President of Corporate Strategy at Clear Capital, asserts that the Industry is prepared for the change because the company has completed more than 235,000 hybrid and desktop appraisals and has more than 5,200 appraisers available willing to accept desktop appraisal assignments.
Every sale is essential in today’s purchase-driven economy and market conditions. Any deviation from the norm raises suspicion, especially when there is a possibility of uncharted. The good news is that desktop and hybrid evaluations have been thoroughly evaluated in various market settings over the past few years. There is enough data to show that the outcomes are overwhelmingly positive.
With a 75% reduction in appraisal timeframes that affect closing dates and a 50% drop in customer-related escalations, we have seen significantly more predictability in the process for the borrower. The modernization of the appraisal process drives more certainty into the businesses. The cost and fee reduction are another manifestation of this certainty. On desktop and hybrid evaluations, we do not have as many charge hikes as we have with traditional processes. As a result, the borrower will pay less overall, and if the lender is covering the charge hikes, that will be a huge bonus. In addition, with technologies such as Freddie Mac’s ACE+PDR solution, the lender has a much higher level of certainty since a full appraisal is not required. Click here to read more on desktop appraisals and their impact on the lending industry.
https://www.housingwire.com/articles/how-is-the-industry-adapting-to-desktop-appraisals/
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