Posted by Once upon a time mortgage lenders hand picked which appraiser handled which transactions. However, today this question has the same chance of being answered “yes” as “can I pick my IRS auditor”. “NO”.
Regulators stripped Phoenix area mortgage lenders of this power long ago. In fact, lenders can not hand pick an appraiser for FHA, VA, Conventional, USDA and JUMBO mortgage transactions. Today, lenders manage appraisal assignment in 1 of 2 ways:
- 3rd party appraisal management company
- Internally managed appraisal assignment group
While I am sure arguments exist for both options, PrimeLending chooses #2. This option gives as much control as the Federal Government now allows. In addition, option 2 reduces costs to the consumer.
Typically, 3rd party appraisal management companies additional charges are added to the appraisal cost. PrimeLending does NOT add any fees. Our clients pay only what the appraiser charges.
Gov’t is Tough on Real Estate Appraisers
Due to Government thinking appraisers contributed to the housing crisis appraisers now have a tighter box to fit inside of. Basically, the government felt appraisers pushed home values up to artificially high levels. In addition, Government believed loan officers pressured appraisers to push values higher.
It is important to note during the wild west days of home loans Arizona was no stranger to appraisal related scams.
How Arizona Mortgage Lenders Order Appraisals
Today (and for the foreseeable future), every lender must assign appraisers randomly. While polices vary for FHA, VA, Conventional and Jumbo loans, all must include the random assignment of an appraiser.
By Jeremy House