Appraisal Management Companies Not to Blame Says Exec

August 26, 2009 No Comments »

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The chief compliance officer for the nation’s first appraisal management company addressed the concerns of Home Valuation Code of Conduct (HVCC) opponents in an interview with National Mortgage News this week.

Donald Blanchard of Lender Processing Services, the parent of LSI, which has been around roughly 25 years, said the HVCC is not to blame for all the recent appraisal woes plaguing homeowners and the industry as a whole.

Blanchard said falling home values, which have slipped considerably since the mortgage crisis got underway two years ago, have been followed by lower property valuations.

The influx of distressed properties like foreclosures and short sales has also contributed to the decline.

That obviously makes sense and accounts for some of the frustration, but what about all the underpaid appraiser gripes and word about long distance appraisals?

He said fees at LSI have been stable for five years, and that its approved appraisers “understand the value added by being a member.”

Not sure if he’s referring to the benefit of volume, steady work, or something else.

In addressing the “myth” that AMCs use inexperienced appraisers, Blanchard fired back, saying the average tenure of the 20,000 odd approved workers on its panel is over 13 years.

There is also a three-year experience requirement to get on the panel; with regard to out-of-area appraisers doing most of the work, Blanchard noted that jobs are assigned with proximity first on the list.

Check out the appraiser viewpoint, which I posted a few months back when this issue was at fever pitch.

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