Written By: Glenn Michaels
When it comes to the appraisal it is extremely important that the underwriting and Quality Control efforts be present in every loan. Most lenders require the underwriter to review every appraisal report and a percentage of mortgage loans be reviewed by Quality Control.
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With most of the responsibility on the lender, lenders must do a better job at appraisal review. With that said, what should a lender do so the responsibility of the third party vendor does not harm them?
• Make sure all underwriters on staff know enough to review appraisal reports.
• Hire an in house appraiser or hire a review appraiser to ensure that appraisal reports are in compliance and not over inflated or under inflated.
• Increase the number of appraisal reports to be reviewed by Quality Control.
• Utilize more online AVM’s to assist in the establishment of the property value.
If a lender does all of the above and documents their efforts to combat appraisal incompetency, fraud, collusion, etc. The lender did his due diligence to make certain that the appraisal report and appraiser was operating within all applicable rules.
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About The Author
Glenn Michaels - As an NAMP® staff writer, Glenn Michaels is a mortgage underwriting instructor for Mortgage Underwriter University www.MortgageUnderwriter.org). As a BBA & FHA DE Underwriter, Glenn is a Pace University graduate who also graduated from New York University’s School of Mortgage Finance. Glenn has conducted numerous training classes and has worked in the mortgage banking industry for 38 years. If you're interested in becoming a writer for NAMP®, please email us at: contact@mortgageprocessor.org.
