What of appraisers? In some cases, Fannie has been known to ban certain ones, sort of like a do-not-fly list. Will it get rid of the many recent headlines of residential appraisal racial biases? Let’s consider that a little more…įannie and Freddie have bragged for years about their seemingly bulletproof internal appraisal risk assessment tools Collateral Underwriting and Loan Collateral Advisor, respectively. Will it be more accurate than the current system? Maybe. Will it be cheaper than what an appraiser charges? Probably. Will it be a faster process than the traditional appraisal? Yes. So, let’s ponder the obvious questions regarding Fannie’s new appraisal algorithm … You don’t need to be a rocket scientist to hypothecate there will be few newcomers to the industry while many more appraisers age out of the industry. Ten years ago, there were 11,968 licensed California appraisers, dropping to 10,560 five years ago and 9,118 today, according to Monica Vargas, deputy director of communications at the California Department of Consumer Affairs. The average age of an appraiser is about 65, according to Lance Siegel, president of HVCC Appraisal Ordering Service. To be sure, the “value acceptance” disintermediation will speed up the appraiser’s demise.

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