Freddie Mac was founded in 1970, its mission has always been to provide access to affordable homeownership and rental housing. Freddie Mac is one of the largest sources of financing for multifamily housing. The Buzz staff reached out to Scott Reuter, the new Chief Appraiser and Director of Valuation at Freddie Mac to discuss his new role and the initiatives he hopes to achieve.
Buzz: Congratulations on your new position. Can you tell our readers a little bit about your background in the industry?
Reuter: My experience dates back 30+ years in the industry. The first half of my career was spent as an independent fee appraiser, and approximately the last 15 years have been associated with banks and on the corporate side of the business. My previous management roles include positions with Bank of America, GE and Goldman Sachs.
Buzz: We understand you are a second generation appraiser.
Reuter: Correct, my father was an appraiser and he had a great deal of influence on my life. When I was in college I was unsure what I exactly wanted to do. However, given a lifetime of exposure to the business and a great role model in my father, I did eventually pursue real estate appraisal as a profession and I am so glad that I did. George Opelka made me laugh once when he mentioned he didn’t find the business – the business found him, I can relate. Dad passed in 2012, I think of him every day.
Buzz: This position is a new position at Freddie Mac, correct? Can you describe some of your duties in this role?
Reuter: Yes, this is a newly created role. My team will be leading the effort for ongoing development and refinement of Freddie Mac property valuation risk management strategies; property valuation and underwriting products and establishing and maintaining a credible quality assurance process for Loan Collateral Advisor, our appraisal quality and valuation risk tool.
Buzz: What goals do you wish to accomplish while in this position?
Reuter: Broadly, I would like to work hard to ensure that we establish and maintain a close working relationship between appraisal quality and modeling. Feedback I hear at conferences suggests to me that there is still some misunderstanding within the appraisal industry as it relates to big data. Modelers clearly look at and think about valuation and data very differently than appraisers. Appraisers have an opportunity to advance their thinking and sophistication regarding the manner in which they select comparable sales data and develop and apply adjustments. I believe Freddie Mac has a role here to lead the effort to manufacturing better appraisal quality.
Buzz: Can you elaborate on any collateral risk management strategies that you are currently working on?
Reuter: Freddie Mac is busy transforming the company to be more competitive and is defining what success will look like across the many strategies we are executing to. A central component to that overall vision is Loan Advisor Suite. It’s a technology platform that pulls critical Freddie Mac tools together to achieve greater value and efficiency. For valuation, Loan Collateral Advisor analyzes appraisal reports and provides feedback regarding appraisal quality and risk. For our valuation team, this is and will remain a central priority.
Buzz: Thank you for answering some questions. We wish you the best of luck in your new position!
Have content of your own that you would like to submit? Email firstname.lastname@example.org.