Tighter regulatory restrictions on appraisals could become less burdensome if companies bring the process in-house, according to a mortgage technology and service provider.
Increased regulations making the lender more liable for appraisal processes has pushed more originators to bring appraisal management back in-house, said Lindsey Reinders, a regional sales manager for SharperLending , LLC. One of the main requirements is to ensure appraisal independence.
McLean Mortgage of Farifax, Virginia recently announced they would be using SharperLending’s “appraisal firewall” technology to make sure they follow new appraisal codes of conduct. At the same time, they hope to increase efficiency and reduce costs.
"We wanted to maintain control over our branches and their appraisal ordering process,” as well as “comply with all appraisal regulations,” Nathan Burch, McLean Mortgage’s president and founder said in a press release.
According to Reinders, the firewall helps lenders and appraisers blindly select each other, in order to keep in-line with independent appraiser requirements. The system will automatically and randomly choose from a list of appraisers for loan officers, documenting the whole process to prove the company did so randomly.