The Other Side On Appraisal Changes
I am not a hypocrite, okay maybe a little, but an article from The Wall Street Journal does make some valid points on why they went to the new Home Valuation Conduct Code (HVCC). However, it does leave out the ability for clients to take an appraisal to another lender, how much they charge for them, what percentage ownership banks have in them, and the inexperienced appraisers.
“Left unexplained is how Mr. Yun and others can decide which “valuations” are faulty. Of course, it would be far too cynical to suspect that that the Realtors classify as faulty any appraisal that stands in the way of a commission check. Still, the issue is tricky–and all the moaning in the world is unlikely to make much difference.
An appraisal is merely an educated guess about the price a home might fetch. It’s true that an experienced and intelligent appraiser knows tricks of the trade that allow him or her to make a better guess than I could. And regulations such as the national Uniform Standards of Professional Appraisal Practice, or USPAP, provide detailed instructions of how to go about this vital chore. But the appraisal is still at best a good guess, and it’s harder to make such guesses when the national housing market is in a freefall the likes of which no living appraiser has ever seen.”