Driving the Nail into Mortgage Brokers and Appraisal Companies!
The rules, which go by the name Home Valuation Code of Conduct, is intended to improve the accuracy of appraisals by eliminating pressure on appraisers from loan officers. The code pushes most large lenders to use third-party "appraisal management companies" that contract with networks of independent appraisers around the country who have no direct contact with retail loan officers or mortgage brokers. Mortgage brokers, who formerly chose appraisers and kept a competitive eye on appraisal fees, say Fannie's and Freddie's rules are adding 20% to 30% to consumers' appraisal costs. I see a standard appraisal that previously went for $325 jumping to $400 or more Starting in May. Brokers and Lenders alike will be forced to use management company appraisers. Some applicants also are balking at handing over credit card information upfront when they're not sure what the charge will be. Now appraisers who are specialist in particular geographic markets will be forced to contract with large appraisal management companies. Individual Brokers are going to feel how difficult it will be to function as they can no longer order the appraisal through the appraiser they know and trust. I now I am not looking forward to dealing with these large appraisal management companies. Bigger does not necessarily mean better!
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