|Very concise and accurate assessment of the appraisal issues I have been commenting on for over 2 years.|
| 5 ways appraisals are sinking real estate deals | Inman News
Source: inman.comWhy your loan may be denied. The first article of this series described an epidemic of late-stage mortgage loan rejections. These rejections are very costly to consumers because they occur after the payment of an appraisal fee, and in some cases after payment of a nonrefundable fee to the lender.A major factor underlying the increase in late-stage rejections is a decline in the quality of appraisals, which is the subject of this article. Why appraisal quality has declined: market factors Part of the decline in appraisal quality has been the result of market factors beyond anyone's control. Home-price weakness: During the go-go years before 2007, home prices generally increased. Both appraisers and underwriters implicitly assumed price increases would continue, which imparted an upward bias to appraisals.
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