Desktop appraisal technology promises to enhance the appraisal profession by assisting both lenders and appraisers. Confidence regarding this technology, both from appraisers and homeowners, however, remains a concern.
According to Fannie Mae, desktop appraisals leverage the wealth of big data, the power of advanced analytics and the speed of technology, enabling appraisers to perform desktop appraisals without physically inspecting the property.
The benefits of desktop appraisal include the support of digital transformation in the mortgage origination process, the cost and time savings for borrowers and lenders, the reduction of confirmation bias, mitigation of appraiser capacity constraints, rigorous testing showing similar risk performance compared with traditional appraisals and improvement of disaster/pandemic response time.
“Desktop appraisals have been around for a long time,” Clear Capital Executive Vice President of Corporate Strategy Kenon Chen said. “The notable evolution is the policy change implemented by Fannie Mae and Freddie Mac to allow desktop appraisals for purchase loans in which they back. This policy includes a requirement for a digital floor plan, which has the ability to enhance the appraisal profession and help lenders as well.”
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This year’s report also examines expanded usage of artificial intelligence throughout the industry and the importance of adopting hybrid appraisals.