Like every other part of the home finance business, appraisal modernization continues to impact how way mortgage lenders operate.
The latest changes, announced by Fannie Mae and Freddie Mac and in effect March 2022, are no exception. On the surface, the new rules make it easier for lenders to rely on desktop appraisals for a larger subset of the nation’s housing stock. But some complexity built into the new rules could lead lenders to overestimate their short-term impact and underestimate the long-term opportunity they will see in their lending business.
In this paper, we will take a closer look at the new rule and its impacts over both the short and long-term and review some specific changes lenders can make now to get the most benefit out of the new regulations with the least disruption to their current businesses. This will not be a line-by-line exploration of the new rules (We'll leave that to the lender’s compliance department), but rather a look at the impacts on the lender’s business.
