The mortgage banking industry is facing challenges on the appraiser front. Appraisers are the gatekeepers for home sales, and yet they don’t always have access to all the available data and technology to do their job accurately and timely. Mortgage lenders, however, are being held responsible for the appraisers’ mistakes and inaccuracies.
This has resulted in a stalled market where lenders have been unable to process loans in a timely manner, or even get approvals for loans in some cases. This unnecessarily punishes lenders for failings out of their control.
The Mortgage Bankers Association (MBA) believes that lenders should not be held responsible for appraiser errors. They argue that lenders need to be able to follow through on their loan commitments and not penalized for the actions of appraisers. They are championing the need for simultaneous access to all the needed factual data, to give the appraisers the tools they need to do their job well.
The MBA also points out that a detour to the appraiser’s office to collect additional data could delay the loan closing process by days. The MBA advocates changing the system so that appraiser access would be available in real-time through a virtual system.
This issue is not only affecting mortgages but has a substantial impact on the health of the housing industry as a whole. It affects buyers, sellers, homeowners, and renters alike. With solutions offered by the MBA, lenders could have the opportunity to show prospective buyers that their loans can be approved without running the risk of being penalized for the mistakes of appraisers. This could ultimately help increase the number of homes sold and relieve some of the current pressure on the housing market.
You can read this full article at: https://www.housingwire.com/articles/mba-lenders-shouldnt-be-held-responsible-for-appraisers-actions/(subscription required)
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