Change to appraisal ordering process
Currently, most loan officers have relationships with preferred appraisers that do a good job and give fair honest values. Fannie Mae and Freddie Mac view this as a way to give false or inflated values to property values so they are implementing as of May 1, 2009 that all mortgage loan officers have no contact with appraisers when ordering appraisal reports. They are requiring lenders to either go through a third party company called an AMC (Appraisal Management Company) or each individual company must put policies in place that salaried personnel only can order appraisals. This has to be a random process that doesn’t guarantee one particular appraiser the business unless that appraiser is considered to be a “staff appraiser”.
This is going to be very similar to the way VA appraisals are ordered and completed. Some of the larger banks such as Chase and Wells Fargo have already gone to systems like this and we can expect more to follow suit sooner than later.
Your friend in the Real Estate business,
Shelli Dore
www.ShelliDore.com