Before we get too far ahead of ourselves, let’s make one thing clear: appraisal review robots powered by automated review technology are not taking over the industry. In fact, these new tools will aim to empower appraisal reviewers to be more efficient and specific when dealing with appraisal issues.
“The unfortunate problem that has developed and become more pronounced is appraisers get callbacks from appraisal management companies [AMCs] or underwriters because they want the E in ‘East’ capitalized. It has nothing to do with the appraisal and value,” said Bill King, director of valuation services at Veros Real Estate Solutions. “What I hope this electronic review will accomplish is to reduce the nuisance callbacks appraisers are subjected to. Especially when someone who doesn’t have a deep appraisal background is doing the first round of reviews, people who don’t understand minor clerical issues are not going to impact the bottom line compared to real valuation-related questions.”
Within appraisal review there are two areas of concern: 1) the completeness and compliance and 2) the quality of the opinion of value. The first area — completeness and compliance — is already being automatically reviewed by the UCDP. When the lender submits the appraisal to the UCDP, it is checked for completeness and compliance with UAD requirements. If it doesn’t meet those standards, the lender is notified and the appraisal must be fixed to meet the UAD standards.
(Click here to download the APP-raising special report to read the rest of the story.)