The average foreclosure costs a lender $60K. The mortgage markets have placed greater emphasis on ensuring the quality, integrity, and accuracy of appraisals and appraisal reviews. To determine if an appraisal provides a credible property value and if the appraisal report is acceptable, you need to be aware of key aspects of the appraisal and the appraisal review process.
In this webinar, we will review the respective roles of the appraiser and the underwriter. We will discuss the criteria you should request when soliciting an appraiser. We will delve deep into the appraiser's scope of work, including items such as performing a complete virtual inspection of the interior and exterior areas of the subject property; inspecting the neighbourhood; researching, verifying, and analyzing data from reliable public, and/or private sources; etc.
We will examine the uniform residential appraisal report for single family residences. You will learn how to calculate the market value of the property, taking into account the three methods of valuation. We will cover value adjustments, depreciation, and reconciliation. Likewise, we will discuss how to analyze additional trends, including the changes in median prices and days on the market (DOM) for both sales and listings. We will also review mortgage industry updates.
- Secondary Market Role
- Responsibilities: Appraiser's Role v. Underwriter's RoleAppraiser Criteris: Licensure; Client List; Samples of Work (i.e., SFR condo multi); Annual Review of Work
- Appraiser Rule: Newer Requirements; Unacceptable Practices
- Uniform Appraisal Report for Single Family Residences, & Examine the Sections, Including:Small Residential Income Property Form (FNMA 1025 or FFHLMC 465)
- Contract - Section for Appraiser to Comment on the Purchase and Sales Agreement
- Neighbourhood - Section to Describe Immediate Surroundings of Property
- The Marketing Addenum Form (FNMA 1004MC or FHLMC Form 71)
- Three Methods of Market Value Calculation
- Mortgage Industry Updates
Who Should Attend?
This informative session is perfect for Underwiters, Processors, Originators, Loan Officers and any Lending Staff involved in the appraisal process.