FHFA to Screw Up Appraisals
The FHFA is looking for comments on how they can better screw up the appraisal process. So if you’ve got a hankerin’ to help out with that you can find a comments section somewhere on the world wide web to do so. What are your thoughts on this appraisal idea from the FHFA?
They have identified a problem where they said one didn’t exist, and they identified what the solution is, and it is going to be through comments from you… They are going to modernize the appraisal process. They have already drawn their own conclusions. Now all they have to do is fill in the blanks on the path to get to where they already know they are going to go. That’s with… what did they say?… oh yes a public comment period.
Other proposals being considered include increasing use of appraisal waivers, which means using an automated valuation method based on existing data rather than a human appraiser… so much for the importance of an independent human appraiser! FHFA said it also is considering allowing what it calls hybrid appraisals where a third party collects the necessary information of a home and sends it to a qualified appraiser who will determine the valuation without seeing the property in person… If you don’t know the quality of the collateral against the loan, then you’re simply flying blind, period… Are independent appraisers really that bad, that expensive, do they take that long? What do we sacrifice by trying to automate them out of the equation?… Per Fannie & Freddie home appraisals are an important step in the home buying process…
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