Changes in the Appraisal industry
As I think, the things are getting more streamline a new ball drops on you and you wonder whether I should call this streamline or another intrusion and restriction to all aready restrictive finance industry.
Here is what I am talking about:
Beginning May 1st 2009, if you are going to be doing a conventional financing you lender will be required to order conventional appraisals through a new layer of compliance. Instead of ordering an appraisal from an independent appraiser, Loan Officers now have to send our request through an AMC (Appraisal Management Company) and we can no longer have any contact with the appraiser. On top of that, the cost of the conventional appraisal will move from $375 to $500.!!!! This cost goes to the AMC to manage the guidelines and add to the buyer’s bottom line at settlement.
The big worry now is that we lose any contact with the appraiser. Anyone with a monetary gain in the transaction (Loan Officer, Realtor, Title Company) may no longer communicate with the appraiser. This does not FHA loans .
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