HOUSING INDUSTRY GROUPS WORKING ON APPRAISAL REFORMS
Things are looking up as this thorny appraisal vs.comparables problem is faced at last. Among the issues being discussed jointly by the NAR (National Association of Realtors), NAHB (National Association of Builders), MBA (Mortgage Bankers Association and appraisal groups are:
· Appraisers not using proper adjustments on comps (comparables) on foreclosed or other distressed properties
· The HVCC (Home Valuation Code of Conduct) impacting the ability to get quality appraisals in distressed markets
· Some appraisers for comps in area they are not familiar with and that impacts the appraisals, driving down home values
· Urging federal regulators to adopt and enforce more clear regulatory guidance on appraisals for distressed and foreclosed properties for realistic valuations and truly comparable sales
· Calling for immediate action to address these appraisal-related claims
· Sometimes appraisers do a “drive by,” only looking at the exteriors of homes as they do not have access, and distressed properties often have apparent problems inside as compared to new, updated, and “market-ready” homes.
Okay government, let’s get this fixed. It IS BROKE.