If you are in the market for a new home mortgage soon you will be hit with additional appraisal cost as the Banks will soon require your property to be appraised by one of their company approved appraisers.
Let’s break this down so you understand how this will impact a borrower. When you apply for a new home mortgage currently you can use any bank approved lender. So as long as a particular appraiser has met the Banks qualifications then their appraisal is expectable.
Today we received notice that at least one Bank/Lender is requiring that all future loan submissions must include an appraiser that was approved by a company appraiser. These “company appraisers” are appraiser will have to channel their apparels through a newly formed company and that will only drive up cost.
This additional cost will be past off to the Consumer / Borrower. The additional cost is to pay for additional protection to the Consumer / Borrower, or is it? The issue here is that these newly formed companies are Bank / Lender owned. This is a bit like putting the fox in the hen house. In the last housing run up who profited the most? This is easy, the Banks!
So soon we will see appraisals increase in cost dramatically as the Banks / Lenders implement this policy. This is clearly an over regulation issue and who will benefit from this even more….the Banks / Lenders. And we the Consumers will pick up the tab.