Source: Scotsman Guide —
Many mortgage professionals would agree that the appraisal process is broken. It has become inefficient and problematic. It is delaying closings and clogging up loan pipelines. And it also has become increasingly costly.
In some instances, appraisal management companies (AMCs) have lost the control they once wielded, allowing independent appraisers to set the market for pricing and turn times. With the onset of the COVID-19 pandemic and the brisk housing market that followed, appraisers found themselves in high demand, which created an opportunity to enable them to begin dictating inspection dates, turn times and fees. There appears to be a clear supply-and-demand imbalance as there are not enough appraisers to meet the increasing workload from mortgage lenders and originators.
