Download the latest white paper from Joan Trice on the importance of choosing the right appraiser. This white paper will discuss best practices for the appraiser selection process.
Much of the post housing finance crisis guidance on the subject of appraiser selection has been in harmony. The fundamental challenge for lenders and their agents is in merging all of the many regulations and guidance around this topic to implement a single coherent and consistent policy. The objective, once the policy is in place, is setting policy into motion with a “best practices” approach.
The significance of selecting the appropriate appraiser for each assignment cannot be overstated. According to Robert L. Parson, Appraisal Policy Specialist at the Office of the Comptroller of the Currency (OCC) “appraiser selection is the single most important part of the appraisal process. Nothing trumps it”. Lenders and their agents should be giving serious consideration to how they initially select their appraiser and how they continuously monitor them. It is a two-step process.
An honest, competent appraiser produces a credible appraisal report. The purpose of engaging a fully vetted appraiser is to avoid certain risks—compliance risk, operational risk, repurchase risk, default risk, and lawsuits from investors as well as borrowers. It is also, simply put, the right thing to do.