USA Today Examines New Appraisal Guideline

USA Today recently examined the FHA’s forthcoming adoption of select HVCC guidelines, and how the change will affect consumers. The article voiced opinions from components of the change including quotes from the National Association of Realtors (NAR) and the Appraisal Institute (AI), as well as counter comments from the Title/Appraisal Vendor Management Association (TAVMA) who are largely in favor of the guidelines. The article specifies how members of NAR and AI feel the changes, and other efforts to reform the industry, are hurting consumers and appraisers alike. These entities feel forcing lenders to use third party appraisal management company’s causes two main problems. 1) Appraisal management companies are providing appraisers — often from outside the market where the house is located — who are less qualified than independent appraisers that brokers and Realtors might choose. 2) Turn times of the appraisal process have increased significantly as NAR explained a member survey found almost 70% saying appraisal times had risen by more than eight days under the new rules. In contrast, the article quoted Don Blanchard, former president of TAVMA who stated, “It is mistaken to say appraisal management companies a re the cause of these values. It's the market," Furthermore the article sited TAVMA’s support of third party appraisal parties as they feel these firms provide well-qualified appraisers on a regular basis.