A mortgage industry trend that requires appraisers to work in unfamiliar
neighborhoods is resulting in serious valuation issues, according to a
new blog posted Sunday, Nov. 22.
FNC’s chief data and analytics officer Dr. Bob Dorsey tackles the issue
of appraiser geocoding in the mortgage technology company’s new blog—Collateral
Vision—which debuted today.
“One of the most consistent observations FNC has been hearing lately
from mortgage originators is that they are receiving appraisals from
appraisers who are operating outside their regions of competence,”
Dorsey writes. “In other words, they are appraising in neighborhoods
where they don’t know the market.”
The consequence? Neither lenders nor appraisers can truly have
confidence in their property valuations, a problem that can lead to
increased lending risk.
Dorsey says today’s lean job market has forced some appraisers to work
outside their comfort zones. He also blames the trend on new regulations
and downsizing by lenders.
The solution is technology. Dorsey describes how lenders can use FNC
systems to automatically identify where appraisers are most likely to
have geographic competence. With advanced geocoding technology, lenders
and appraisers alike can gain confidence in the valuation’s accuracy.
Geographic competency is governed by the Competency Rule of the Uniform
Standards of Professional Appraisal Practice (USPAP) and has been a
topic of great discussion in the residential mortgage lending industry.
Learn more about geographic competency and other tough issues facing
the residential mortgage industry. Visit
www.collateralvision.com
.
About FNC, Inc.
FNC pioneered real estate collateral information technology. Since 1999,
FNC has driven down costs and streamlined loan processing for the
nation’s largest mortgage lenders. With its collateral management
platforms and collateral-focused data and analytics, FNC provides
advanced insight into the property backing a loan from origination to
capital markets. No one understands real estate collateral better than
FNC. Visit FNC’s Web site at www.fncinc.com.
FNC, Inc.
Public Relations:
Bill Dabney, 662-236-8304
bdabney@fncinc.com