If you have worked in the Real Estate Industry you’ve undoubtedly come across an “Appraisal Panel” when working with various lenders. Mid-year 2009, new restrictions were put in place around how lenders could interact with appraisers. Back when I first started, a Loan Officer could select the appraiser for a specific loan. This was helpful in the sense that mortgage lenders knew who delivered on time and specialized in specific areas–and could count on a certain level of quality. At the same time, it created the potential that a lender might try to influence an appraiser to hit value because of their relationship rather than market-based facts. Hence, the birth of the “Appraisal Panel” and a separation of duties limiting who can order an appraisal.
When it comes to a panel, lenders can opt into one of the national appraiser pools or create a bank-specific local panel that they manage under certain protocols. One of the challenges banks face is discerning who is really an expert in a market. National Panels generally are not able to narrow an appraiser down to specific cities/neighborhoods so it pays to create your own local Appraisal Panel. For instance, an appraiser might select all of Dallas as his/her market. The Dallas metro area is so gigantic there is absolutely no way an appraiser could know the nuances across all these communities. At First United, we have our own local market Appraisal Panels to help lessen the likelihood of getting an inaccurate value and ensure that our buyers are paying fair prices for their home.
Geoffrey Davis – Mortgage Loan Consultant
NMLS #206192 First United Bank & Trust
F: 855-239-6079 6401 S. Custer Rd.
McKinney, TX 75070