Many in the industry aware of this program involved in the 6-year pilot have shared that they believe this will help pave the way for a better appraisal process. There are many reasons why, with the top being that this process will help to bring transparent standardized data that can objectively be utilized. This will help potentially reduce bias and as stated by Fannie Mae “provide operational simplicity along with certainly at the time of loan application.” As lenders start adopting this appraisal management companies will need to find strong 3rd parties approved service providers. Appraisers will likely need to weigh their opportunity costs and decide if they would like to become certified data collectors. Some AMCs will likely look to partner or invest in technology providers if they have a panel to perform this work. Overall, it will take a few quarters for the industry to digest these changes but overall the industry is moving in this direction due to the benefits stated by Fannie Mae:
- Lower origination cycle times and maybe reduced borrower costs
- Promotes safety / soundness by obtaining current observation of the subject property
- Provides operational simplicity and certainty at the application
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