According to Reverse Mortgage Daily, Once a booming business, many appraisers left the industry upon the housing crash, never to reenter the market. More generally, though, changes including new regulations have led to a decline in qualified appraisers at a time when borrowers are starting to need their services increasingly once again.
We are seeing a shortage at this point for a number of reasons including:
1. Low fees from Appraisal Management Companies.
2. Aging population in the profession.
3. Difficulty in becoming an appraiser.
4. High regulatory costs.
5. Higher demands for reporting requirements with shorter turn time expectations.
What does this mean to borrowers? For one, borrowers will now have to wait longer for appraisal reports because the appraisers that are still doing business are so busy that it’s affecting the length of time it takes from inspection to completion. This could also mean higher costs of appraisals. Supply and demand will dictate higher fees.
What can we do? We need to work together to develop a plan to attract the next generation of appraisers to the profession. Financial institutions could lessen their restriction of trainee appraisers and allow the trainee appraisers to complete appraisal assignments with thier certified appraiser. We also need the appraisal management companies to step up to the plate and start paying these professionals what they deserve.
Loan applications are on the rise and many markets are showing stabilization in home values. Let’s work together and make a difference.