Modernizing the Appraisal Workflow

The topic of modernizing the real estate appraisal workflow has attracted a fair amount of controversy, which is strange given the many benefits every other function in the home financing transaction has enjoyed. The pathway to digital lending is literally littered with positive impacts, for lenders, service providers, regulators and, of course, borrowers.

From a talent perspective, Class Valuation and NAMMBA are fully aligned in understanding the importance of diversifying the workforce in the mortgage industry—including the appraisal space—to be more reflective of the populations of our communities. And we believe introducing new, exciting technology to revolutionize the way appraisals are completed could be one way to entice new, diverse entrants into the field.

SO, WHY NOT THE REAL ESTATE APPRAISAL?

The appraisal industry has not advanced at the same rate as the rest of the mortgage market. The current practices provide us with insufficient data or property characteristic insights that are delivered in an inconsistent and non-standardized fashion.

A review of published reports from the field and news covered in the industry’s trade press reveal a mistaken assumption, namely that modernizing the real estate appraisal process will render professional real estate appraisers unnecessary. This is simply not true.

Our long experience in this industry, providing collateral valuation via a number of current methods, has convinced us that the real estate appraisal cannot be delivered without the input of a professional appraiser.

Despite any statements to the contrary, professional appraisers aren’t going away. But they could use a helping hand staying relevant by keeping pace with the digitization of the mortgage process. In this paper, we’ll discuss why the appraisal process must be modernized, the benefits all parties will enjoy when this has been accomplished and a new method that will take the industry in this direction. Download the full whitepaper here.

As a sponsor of NAMMBA CONNECT 2021, Class Valuation will be exhibiting at the conference in Atlanta later this month. We encourage you to stop by and speak with us about our perspective on the future of the appraisal industry.