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December 2016

I want to welcome you to Dart Appraisal's new Dart Board newsletter, a forum in which we will share issues we're seeing in the appraisal industry that may have an impact on our lender partners. I'll also be sharing my observations on these topics, and explaining what we are seeing here at Dart Appraisal.

MDresden

Michael Dresden
President
Dart Appraisal

Turn Times. For this first issue, I wanted to get right into appraisal turn times since they have been a hot topic of conversation for much of 2016. For the most part, we're seeing turn times "normalize" to 2015 averages. There are still certain areas of the country, including the Northwest, Colorado, Maine and rural Texas, where turn times remain above what we've come to expect over the past two years. We expect this normalization trend to continue as we head into what is typically the seasonally-slower lending season.

We know that appraisal turn times have a direct effect on your loan closing timeline, and that behind every appraisal report is an individual borrower. Our operations team puts forth the utmost effort to ensure our reports are delivered as timely as possible, and with the quality you've come to expect from Dart Appraisal. We've spent more than two decades building relationships with our appraiser panel. We continue to develop that loyalty we've built with our appraisers through a variety of channels, including hosting in-person networking events across the country, to ensure Dart's orders receive priority attention.

Appraisal Fees. Another topic of contention this year has been rapid appraiser fee acceleration. While the rate at which fees increased seemed extreme, in many markets the increases were also extremely warranted. Generally speaking, most appraisers haven't seen increases for their work in some time. Markets change, and it should be expected that fees for appraisers' expertise and hard work would change along with the market.

Dart sets our fees using the rates paid to appraisers in the past 12 months, and we review those fees on a quarterly basis to ensure our C&R range is appropriate. We recognize that fees do increase due to complexity, location, etc., and we understand the effect fee increases can have on the loan origination process under TRID. To mitigate the delays, Dart offers a guaranteed fee schedule as well as a complexity fee that can be added at time of order. To learn more about those pricing solutions, contact your Account Executive or info@dartappraisal.com

Appraiser Shortage? "What is going to happen to the industry with the appraiser shortage?" This is a question that we hear a lot. For most counties there is not an appraiser shortage right now, but it's true that there could be one coming in the future. Becoming an appraiser is no easy feat - applicants need 2,000 hours of trainee experience, an additional 150 hours of education, and must take a state-issued exam. To become a certified appraiser, which is required to complete FHA assignments, you also need a 4-year degree. These requirements are a huge barrier to entry, and the Appraisal Qualifications Board is looking into changing those requirements to allow more people into the profession. Dart Appraisal is also active in conversations with the MBA, the Collateral Risk Network and the Association of Appraisal Regulatory Officials about the potential shortage, and we welcome any feedback from lenders regarding these issues.

This year we've certainly seen higher volumes of mortgage lending activity than any of us predicted at this time in 2015. We at Dart Appraisal want to extend our thanks to all of our valued clients and brokers for their continued partnership, and for allowing us to provide your appraisal management services. We look forward to another great year in 2017. If there is anything we can do to assist you, please don't hesitate to contact us at info@dartappraisal.com.

Thank you,


Michael Dresden
President
Dart Appraisal

 

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