In part two of our Q&A with Jacquie Doty, vice president of Collateral Solutions for CoreLogic, we talk appraisal review, quality assurance and the ever-changing landscape of appraisal regulation. 

Valuation Review: Many of the UAD errors are first seen by the lender or appraisal management companies. How do you see this impacting appraisers?

Doty: Appraisers will now have to take even greater strides to avoid making UAD errors in the first place, since fatal errors on an appraisal report could slow down the lender’s ability to sell and transfer a loan to the GSEs and could potentially cost the appraiser future assignments from a lender or AMC. It is possible that lenders will begin to track instances in which appraisers did not comply with UAD requirements and the loan sale was delayed. Ultimately, this could result in a shift in the amount of work to appraisers who have shown they consistently produce UAD-compliant appraisals. Of course, it’s in appraisers’ best interests to produce a UAD-compliant appraisal, as re-work is also costly for the appraiser. Appraisers can research companies that can provide tools to assist them in completing UAD-compliant reports, perhaps by alerting the appraiser when UAD fields are out of compliance.