Desktop Appraisals Hype
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…attempts to make readers believe desktop appraisals are the be-all, end-all of property valuation…
Folks, a ‘white paper‘ was put out by a company in the property title, escrow and servicing sectors, tied to mortgage lending.
It does a reasonable job of explaining what Hybrid appraisals are… which they call “desktop” assignments.
Both of these are typical PR pieces, designed to provide information while promoting a specific brand.
Interestingly, neither mention anything at all about the interest of appraisers to actually complete these assignments. Many appraisers won’t do them.
But the proliferation of these products by all lenders tells me that more and more appraisers are biting on them. Looks like it might be time again for someone to conduct an informal survey among appraisers to evaluate the penetration of these hybrid assignments into the appraiser population across the country.
I did a survey a couple of years ago, with this result:
Excerpt from Stewart white paper “Desktop Appraisal: A Guide for the Mortgage Lending Industry”:
Advantages of Desktop Appraisals
- Desktop appraisals offer a significant tool to the array of risk management tools available by filling that gap in between traditional appraisals and the lesser-valuation tools like AVMs and BPOs.
- Delivery time for desktop appraisals is much shorter…
- Fees for desktop appraisals are lower than traditional appraisals…
Desktop appraisals are not currently compliant with Fannie Mae or Freddie Mac requirements for all first mortgage situations, but these requirements are subject to change…
Excerpt from PR Newswire article:
Clear Capital’s Modern Appraisal Program uses ClearInspect™ — Clear Capital’s new, intuitive mobile app — to guide appraisers, agents, brokers, and other data collectors step-by-step through a property data collection process to ensure quality and efficiency. The results can easily be delivered to customers, government sponsored enterprises (GSEs), and appraisers who may perform a desktop valuation based upon the collected property data…