Fannie Mae & Freddie Mac Have Gone Rogue Appraisal Update

I have some important news to share with you about recent changes to the way that Fannie Mae and Freddie Mac accept appraisals.

As of March 19, 2022, they will now accept remote desktop appraisals on eligible transactions without the appraiser ever needing to step foot on the subject property.

This means that appraisals can now be done without ever leaving the comfort of your own home. While this may seem like a good thing, there are some concerns you need to be aware of.

One of the biggest challenges is inertia and the status quo.

While there are many exciting innovations and advancements in collateral valuation, such as automated collateral evaluation (ACE) appraisal waivers and desktop appraisals, there are still many companies that are resistant to change.

This means that the industry could be ill-prepared to face another market upheaval when it happens.

So, what can you do to prepare yourself for the future?

First and foremost, you need to stay up-to-date with the latest advancements in collateral valuation.

You need to be aware of the risks and benefits of using nontraditional appraisal methods, and you need to be prepared to adapt to changes as they occur.

You also need to be mindful of the potential for bias in the appraisal process.

Hybrid and desktop appraisals may help to mitigate the risk of unconscious bias by removing the face-to-face interaction with agents, buyers, and sellers, which could lead to unfounded assumptions.

However, it is important to remain vigilant and aware of any potential biases that may exist.

As the real estate industry continues to evolve and change, it is important to embrace new technologies and innovations.

But, we must also be aware of the risks and challenges that come with these changes. By staying informed and prepared, we can navigate these changes with confidence and continue to serve our clients to the best of our abilities.

Read the full article on the Freddie Mac website