One Way to Solve The Appraisal Crisis
Dear Fannie Mae, Freddie Mac, FHA, VA, and USDA.
For background, I have been in the mortgage and real estate business since Ronald Reagan was POTUS.
What I see today is a need for speed for purchase transactions. Good people who could be giving you great loans are being thrashed by cash buyers that can close in 15 days.
Because of the appraisal crisis, lenders can’t compete. Your hybrid is a start. But, the question I have is, why can’t you stretch the guidelines for refinances?
I had a loan that I did the $999k value even though the real appraisal was for $1.7m and a loan amount for a no cash out transaction of $450k. It recommended a full appraisal. tell me how that makes sense.
Cut down the refi appraisals and you’ll be able to make the purchases faster and people will have a chance.
