Stephen J. Vertin MAI
Senior Member
- Joined
- Jan 17, 2002
- Professional Status
- Certified General Appraiser
- State
- Illinois
From Today's Realty Times
As reported by Peter G. Miller in RealtyTimes < http://www.realtytimes.com/rtnews/rtcpages...petermiller.htm >, HUD is once again listing FHA appraisers by the number of "claims" and "defaults" involving properties they have valued. On HUD's Appraiser Claim and Default Rates page < https://entp.HUD.gov/idapp/html/appr_search.cfm >, will be found a list of those appraisers who supposedly have the highest claim and default rates. Under the HUD's Appraiser Watch Initiative, "default" means a mortgage unpaid for at least 90 days, while a "claim" means foreclosure.
Previously, in January, 2001, HUD listed appraisers and their alleged default rates online, a practice that was discontinued within weeks.
As Miller points out, although it may seem logical to have some way to measure appraisers and their services, using defaults and claims is not the way to go because appraisers have nothing to do with whether a borrower pays on-time, is late, or pays not at all.
While appraisers have always been convenient scapegoats one still must wonder why HUD would reprise this non-sensical practice. On the other hand, just to be safe maybe appraisers should start ordering credit reports on borrowers.
As reported by Peter G. Miller in RealtyTimes < http://www.realtytimes.com/rtnews/rtcpages...petermiller.htm >, HUD is once again listing FHA appraisers by the number of "claims" and "defaults" involving properties they have valued. On HUD's Appraiser Claim and Default Rates page < https://entp.HUD.gov/idapp/html/appr_search.cfm >, will be found a list of those appraisers who supposedly have the highest claim and default rates. Under the HUD's Appraiser Watch Initiative, "default" means a mortgage unpaid for at least 90 days, while a "claim" means foreclosure.
Previously, in January, 2001, HUD listed appraisers and their alleged default rates online, a practice that was discontinued within weeks.
As Miller points out, although it may seem logical to have some way to measure appraisers and their services, using defaults and claims is not the way to go because appraisers have nothing to do with whether a borrower pays on-time, is late, or pays not at all.
While appraisers have always been convenient scapegoats one still must wonder why HUD would reprise this non-sensical practice. On the other hand, just to be safe maybe appraisers should start ordering credit reports on borrowers.