The VA Required to Encourage Hybrids – Senate Passes HR 7735

Dave Towne
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Senate Passes HR 7735 - The VA Appraisal Modernization Measure. 

The VA will now be required to encourage hybrid appraisals. 

If you are a VA Appraiser, here’s a bit of news you need to keep tabs on.

Senate Passes VA Appraisal Modernization Measure – theMReport.com

The U.S. Senate has announced the passage of HR 7735, the Improving Access to the VA Home Loan Benefit Act of 2022.

Under the terms of HR 7735, sponsored by Sen. Dan Sullivan and Rep. Mike Bost, the VA will be required to:

  • Issue certification requirements for appraisers;
  • Execute minimum property requirements;
  • Review the process for selecting and reviewing comparable sales;
  • Implement quality control processes;
  • Establish the Assisted Appraisal Processing Program; and
  • Establish the use of waivers or other alternatives to existing appraisal processes.

“The enactment of this MBA-endorsed legislation will now help streamline the home buying process for veterans and their families by requiring the VA to update its home appraisal rules and program guidelines. To the benefit of buyers and lenders, the VA will now be required to encourage hybrid appraisals, employ emerging technologies, and revisit policies on property inspection waivers, minimum property requirements, and comparable sales.”

“VA home loans have given millions of veterans and their families the opportunity to purchase a home,” said Rep. Bost. “Yet, on average, veterans wait longer and pay more during the closing process due to VA’s out-of-date appraisal requirements. That’s why I am introducing the Improving Access to the VA Home Loan Act of 2022 with my friend, Senator Dan Sullivan. This bill will make sure that veterans are not unfairly disadvantaged during the home buying process and allow for a modern, digital appraisal process, which will get them into their new home faster.”

The U.S. House of Representatives passed HR 7735 back in mid-September, and now moves on to the desk of President Biden for his signature.

This is not yet ‘law’, but likely will be in the not too distant future.
 

Dave Towne

Dave Towne

AGA, MNAA, Accredited Green Appraiser - Licensed in WA State since 2003. Dave Towne on e-AppraisersDirectory.com

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18 Responses

  1. Avatar Krystal S says:

    Safety, common sense, and quality be damned! Slap garbage in, put garbage out; as long as it is fast! Hurry, hurry! “We offer three kinds of services; good, fast, and cheap.1) Good and cheap; won’t be fast. 2) Fast and good; won’t be cheap. 3) Cheap and fast; won’t be good.” I sure hope the VA has the good sense not to opt for the ‘fast food restaurant’ option that is proposed. Cutting out the only unbiased specialist in the process is not the way to aid or protect our Veterans or the interests of the VA.

    22
  2. Avatar Bryan says:

    “To the benefit of buyers and lenders” says it all. How does this benefit a buyer? Them not knowing the value of the largest purchase of their life and getting a 100% loan?

    12
  3. Avatar Donna Taylor says:

    If the VA really wanted to cut the time it takes to deliver an appraisal, they might consider dropping the requirement to take all the comp pictures. I’d get the report done in 1/3 to 1/2 of the time if I didn’t have to drive so much to take comp pics. I live in a rural area and at times it takes all day just to take comp pics.

    12
    • Avatar Pierce Blitch III, GRI, RAA, IFAS, ASA says:

      Be careful what you wish for based on this Bill. You will be doing Hybrids for 1/2 the price…….MLS comp photos are accepted……

      2
  4. Avatar Eric Kretz says:

    “Veterans wait longer and pay more during the closing process due to VA’s out-of-date appraisal requirements”

    What planet is he living on? VA timeliness guidelines are 7 days in my area, which is far faster than most FHA or conventional appraisal turn times. VA has stated they pay more to get the veteran the service they need and deserve.

    I’d guess there is a NAR or NMLA lobbyist who are pushing this. Follow the money…

    12
    • Avatar PJTMC says:

      Talk about cost and inferring VA is in effect overcharging a veteran is ridiculous. They realize the time it takes to produce a credible report. Their fees are not something they arbitrarily manufacture. They are based on evidence of typical fees paid in a market area. They need to check with what the AMC’s are tacking onto the low ball pricing they pay the appraiser then let’s talk about over charging.

      3
  5. Avatar Charles Minzenberger, SRA says:

    “be required to encourage hybrid appraisals” is bothersome, Fannie and Freddie have been pushing the for only about 6-months, these things are really not tested. Now that rates are up and the market is softening getting an acutal appraiser in the house is more important than ever. Most appraisers I know won’t touch these things, I’d bet those that are completing these reports are just rubber-stamping just to move onto the next order and fee, I think these will crash and burn-they really don’t save time, and now you have another middle man in the mix in addition to the useless AMC? What a scam.

    9
  6. Avatar Randall R. Davis, SRPA, SRA says:

    The generalized statements by the senator have no factual support. The quality of a VA appraisal is superior to the reports of an AMC as the appraiser doesn’t have to jump thru the hoops of the AMC reviewer which 95% of the time has no bearing on the developed opinion of market value and result in taking more time to complete the assignment. I have been a VA appraise since 1980, and as a veteran, I, have fired all of the many AMCs that I and my company used to work with.

    12
  7. Hybrid appraisals are not as reliable or accurate as traditional in-person appraisals, which can be detrimental to home buyers. The VA needs to hire more appraisers if they want to speed up the process.

    7
  8. Avatar PJTMC says:

    Our know nothing about the appraisal process politicians have now managed to destroy the one last vestage of allowing an appraiser to appraise without undue influence and given the time to adequately and competently complete an assignment. Having been a fee panel appraiser as well as a senior appraiser at va I’ve been on both sides of the fence. Their processes are outstanding; maintaining quality control and protecting the veteran. Yes, protecting the veteran. Be clear, messing with this is about the lenders and NOT the veterans, I don’t care what the politicians are professing; they are misinformed. The turn time argument holds no water and is bs as the fee panel is held to strick turn times with consequences if habitually late without justification. It’s all about big banking folks and shame on them using the veteran as their pawn. Up next….dissolving of the fee panel all in the name of greed.

    7
  9. Avatar Charles Minzenberger, SRA says:

    I’ve applied to be on the VA panel a few times and always got a nice response back saying they have enough appraisers in my area, but they would keep my file if something should change. Well!! I got an invite about two weeks ago to join, I’m just waiting for a final referral letter, they have everything else they need and I should be good to go. I was feeling really good about this until I saw this today, and I am really surprised, I was not aware the VA used AMCs at all, one of the attractions was to go back to true appraising. Do they really use AMCs?? if yes, which ones? Feeling defeated.

    3
    • Avatar Pierce Blitch III, GRI, RAA, IFAS, ASA says:

      No AMC’s for VA

      3
    • Avatar PJTMC says:

      Semi-retired. Reference was to conventional appraisals. To the best of my knowledge they do not use AMC’s. It’s a Government agency and run like the military. When they get their marching orders they follow them. Lot of good, knowledgable appraisers work for VA and some of this stuff doesn’t sit well with them either but they have no choice. There’s is to protect the veteran and use of AMC’s is something I doubt will occur but who knows given this demonizing of appraisers climate.

      2
  10. Baggins Baggins says:

    It’s the VA appraisers turn now to enjoy what the rest of the appraisal community has dealt with for the past decade and longer. We told you there was no safe haven. We urged you to get involved and push back against fnma hud revaa, rising demins, to market lenders directly, to boycott amc’s, make your voices heard, to push back against the prescient being set. Now there is no sideline safe haven in lending. Welcome to the club. FNMA set the standard, HUD followed, and all those exact same lenders whom paid more for VA simultaneously watched tens of thousands of other appraisers cross the picket line and continue to work for amc’s for the exact same lenders, under less rewarding and more restrictive terms. Guess where your work will go next. The real kicker is if you want to stay on the VA panel, you probably won’t have a choice. Getting out of lending work in general won’t save you either, legal and estate comes next, only a matter of time.

    Appraisal industry modernization, aka relieving borrowers of the benefit of full service protection, advocating for more lender control and more central bank authority. It’s all so flimsy, the argument for cost savings over a few hundred hard costs to the appraiser, while cash equivalent costs under steeply increased rates with ballooning up amortized terms will jump the actual out of pocket total payments of borrowers hundreds and hundreds of thousands of dollars over the life of the loan. Tag on severe mismanagement from the federal level, an effective inflation rate which at this time appears to be well over 20% and still tracking upward. Get your mind around the concept that the people in government are ran by the fed, have no intention of even trying to balance the budget, and really don’t care about securitization or studious funds programs management. In this corrupt system with no accountability everyone involved gets sold down the river, no exceptions. Until Americans choose to become educated about 1913, expect more of the same. You are watching political theater.

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    2
    • Baggins Baggins says:

      Tried to upload a photo there, seems to have not uploaded. Try again here.

      The next omnibus. Another round of if we don’t pass this, the government will have to shut down. We’re like, oh please do just stop, go home, and never come back. A shut down of the federal government would be a welcome event indeed.

      2
  11. Avatar Scott Olsberg says:

    This is a disaster in the making! Safe, Sanitary & Sound goes out the window. What does the inspector have to lose? They are not signing the report. Inspectors won’t know the MPR’s. There will be a lot of back-forth figuring out what is correct and what is not. This will slow the practice. I hope this is not adopted as we all do I am sure.

    1

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The VA Required to Encourage Hybrids – Senate Passes HR 7735

by Dave Towne time to read: 1 min
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