Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Home inspectors have to step up on short notice, it's the nature of the game. Buyers only have a limited number of days to get their inspection done. Inspectors might be working full time all the time, and still have no idea where they will be next week. They live on about three days notice.
Appraisers, on the other hand, do a different job and have increased distance and anonymity built into the system. Buyers and agents can't schedule or interview appraisers.... appraisers are assigned out of a pool scheduling service.
Appraisal licensing requirements have also greatly increased. A couple years ago regulations changed and made it even harder to become qualified to do VA appraisals and we had a serious shortage until the industry could catch up. Now, we tend to get most appraisals scheduled within a week.
Home inspections are not arranged by the bank.
The bank arranges an appraisal and seems to do everything possible to run out the clock on your rate guarantee.
Home inspection can be scheduled in a day but appraisal is like 2 weeks in advance. Why??
Skill set or bank just wants more info during the 2 weeks anyways?
1) There are less appraisers available in most markets.
2) There's a Fed rule that the appraisers are picked in a spin-the-wheel fashion
3) Appraisers are typically the very last person to inspect the home because banks don't like getting stuck with appraisal bills. Most banks are requiring that the appraisals be paid by the buyer, this is a recent shift in the industry.
Exactly. The average inspector is self-employed, the appraisers work for the financial institution whether as employees or contractors. Financial institutions are not known for their innovative practices.
Why does ABC Bank do things this way? Because that's the way they always have.
False... Appraisers are also self employed. They have never been employed by the banks. After the housing crash, the way they are employed was changed. Some thought it was too cozy, so appraisers are now assigned out of a much more anonymous pool service, banks cannot request particular appraisers.
False... Appraisers are also self employed. They have never been employed by the banks. After the housing crash, the way they are employed was changed. Some thought it was too cozy, so appraisers are now assigned out of a much more anonymous pool service, banks cannot request particular appraisers.
Not necessarily, there are a number of ways lenders can engage appraisers.
Some order through an AMC, who will shop for cheapest and fastest out of a large pool of appraisers.
Some lenders order through an AMC, but have a panel of appraisers, depending on size, maybe 5 to 10. With few exceptions, all the appraisal orders go to the selected few. They are typically assigned based on area, knowledge, and availability. The loan team cannot assign a specific job to a specific appraiser. Unless, due to the type of property, there is one who is more qualified.
The other option is that lenders order direct. They have a separate office, away from the LOs, and they can choose to what appraiser any particular assignment goes.
False... Appraisers are also self employed. They have never been employed by the banks. After the housing crash, the way they are employed was changed. Some thought it was too cozy, so appraisers are now assigned out of a much more anonymous pool service, banks cannot request particular appraisers.
Well, you are definitely incorrect in stating appraisers "have never been employed by the banks." I knew two people who were. Today's circumstances may be different but a quick look shows a number of banks having job openings for Certified Residential Appraisers. I can also find no regulations that forbid the use of in-house appraisers by banks.
Koko they may hire appraisers to perform duties within a bank. But appraisal as part of the loan process is an independent appraisal... not a fellow employee of the bank. And it definitely should be that way.
At least in my area :-)
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
