Although appraisers and underwriters have different roles in mortgage lending, their responsibilities are interrelated. Common goals focus on making certain that appraisal reports are well documented and the valuations are supported. Reviewers, quality control personnel, real estate brokers and agents also share these goals.
This past summer I took a continuing education seminar through the Appraisal Institute entitled, “Whatever Happened to Quality Assurance in Residential Appraisals: Avoiding Risky Appraisals and Risky Loans.” I found this course to be informative and relevant not only for appraisers, but also for the variety of other players in the real estate lending field. In the interest of full disclosure I want to note that this seminar was developed by FNC Chief Appraiser Kathy Coon, SRA, in conjunction with the Appraisal Institute.
I found this seminar especially interesting as it covered a variety of timely topics as outlined in the course overview:
- Recognize key issues and concerns of the lending industry about residential appraisals; recognize key issues and concerns of the appraisal industry about the lending industry
- Identify actions of incompetent and/or unethical appraisers that render faulty appraisals, thus impacting the credibility of the appraisal profession
- Recognize the responsibility of the appraiser as being the primary gatekeeper charged with providing independent, quality appraisals
- Identify red flags consistently noted on faulty appraisals; recognize the impact of inconsistencies and omissions in an appraisal report that result in an opinion of value that lacks support and credibility
- Recognize the differences between underwriting guidelines and proper appraisal procedures and identify ways to bridge the gap
- Identify possible solutions for both lenders and appraisers, which result in improved business relationships and more reliable appraisal reports
The case studies and examples were relevant to the everyday work lives of appraisers, underwriters and others in the mortgage lending industry. This resulted in a wealth of constructive classroom discussion, which of course always makes a seminar more interesting. I found especially interesting the discussion regarding how underwriters and appraisers can communicate and work together better. We are all negatively impacted by faulty appraisal reports. Likewise, we all benefit from quality appraisal reports.
For further information on this seminar, check out the Appraisal Institute’s website: http://appraisalinstitute.com/
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