Banks Are Driving the Appraisal Waiver Train
By Jonathan Miller
Excerpt: Look at the ASC members and their North Dakota waiver vote on July 9, 2019
Only FHFA and HUD voted against the North Dakota Waiver. Those specific agencies deal with appraisers first-hand and understand their role in the risk management process. The remainder are bank regulators or in the case of CFPD, represent consumer interests (and the agency has been gutted over the past several years to reduce its pro-consumer efforts).
In other words, banks are driving the waiver train. They want to remove a pain point from the mortgage process to grow more origination volume. The Federal government has already proved it will be willing to back up the banks if the economy collapses so why not keep pushing for removing of all pain points?
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My comment: Nothing new. Lenders have wanted to get rid of appraisals for decades. Impediments to The Deal.