The CMPS Institute, which serves as a training and certification hub for financial professionals working in the mortgage industry, sent feedback rejecting some of the proposals in the Home Valuation Code of Conduct to regulators this week. Download CMPSCommentOnAppraisalRules.pdf
CMPS says the Code will be broad-sweeping forcing virtually every significant lending platform to adhere to the GSE's guidelines, while also creating an environment that potentially hurts borrowers.
“It's about time the industry got serious about tackling this very real problem,” said Gibran Nicholas, chairman of the CMPS Institute. “However, a few of the policy changes go overboard, and these should be modified to better protect homeowners.”
One of Nicholas's main concerns is the fact that borrowers buying homes could potentially be prevented from retrieving old data or from the pursuit of finding their own independent appraisers.
Nicholas added, “For example, lenders and brokers won't be able to give appraisers any old appraisals, helpful data, or any other estimate of what a home is anticipated to be worth at the time the appraisal is ordered or at any other time prior to the completion of the appraisal. This would drive up consumer costs as appraisers would be forced to redundantly analyze data that may have already been paid for by the consumer or analyzed by another appraiser in the past.”
CMPS also criticized the appraisal code for prohibiting communication between mortgage brokers and agents and the appraisers who are in the process of assessing a home's value. Nicholas believes this lack of communication would only prove to frustrate borrowers, while also prolonging the process and increasing related expenses.
- Article Source: DSNews.com
- Download CMPSCommentOnAppraisalRules.pdf
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