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May 2018


Michael Dresden
Dart Appraisal 


Welcome to the May issue of our Dart Board newsletter. For this month's edition, I wanted to share a high-level overview of an Appraisal Update webinar we recently sponsored with Fannie Mae.

FNMA Q2 Appraisal Update. Last week, Fannie Mae hosted an Appraisal Update webinar for nearly 500 appraisers nationwide that Dart was proud to sponsor. The program content was centered around policy changes, recent appraisal observations, as well as practical suggestions for how appraisers can get involved in shaping the future of the industry. Some of the major policy changes presented were:

  • Second Appraisals. Previously, if the lender considered an appraisal deficient, they could forego obtaining a desk review or field review and order a new appraisal.  However, upon obtaining the new appraisal, the lender had to use the opinion of market value as stated in the new report because the lender had, at that point in time, rejected the original appraisal.

    The updated language, effective 1/30/18, requires the lender to document the deficiencies that are the basis for ordering the new appraisal and to adhere to a policy of selecting the most reliable appraisal rather than the appraisal that states the highest value. The lender must document the resolution of deficiencies in the original appraisal or detail the reasons for relying on a second opinion of market value.
  • Field Reviews for Values $1M+. Previously, a field review report was required on properties valued at $1M or more when the LTV, CLTV, or HCLTV ratio was greater than 75%. That field review requirement has been removed, thanks to advancements in tools (such as CU) that provide the data analytics needed to reduce borrower's costs and improve lenders' operational efficiencies while still managing risk. This change was effective 1/30/18.
  • Upcoming Policy Change: Manufactured Homes with Additions. FNMA's current policy requires that when a manufactured home has an addition or structural modification, and is not located in a state with an agency responsible for inspecting these modifications, then the property must be inspected by a licensed professional engineer.

    The new policy will require that if the state does not have an inspection requirement, then the structural modification must be inspected and the structural modifications be deemed structurally sound by a third party who is regulated by the state and is qualified to make the determination.

The program also included some data on appraisal observations from CU - for instance, 64% of loans with appraisals delivered in Q1 had a CU Risk Score of 2.5 or lower. In 2017, appraisals that were resubmitted to the UCDP were resubmitted an average of 2.45 times, with an average time between resubmissions of just under 13 days. (Those figures exclude appraisals with only one submission.)

Continued Focus on Appraiser Education. Sponsoring this FNMA webinar is just one way Dart supports the continuing education of our appraiser panel. Dart offers all members of our panel a 10% discount on Continuing  Education courses with Dart Academy, which is a partnership we have in place with McKissock, LP. Dart Academy offers appraisers a complete collection of CE courses, from mandatory curriculum to state specific issues. We host regular webinars on certain topics for our panel members, which are typically hosted by our Chief Appraiser and Director of QC. Dart also sends monthly emails out to our panels with timely tips and information.

Career Day. Switching gears for a moment, I wanted to share a personal story from a few weeks ago, when I was invited to be a career day speaker at my kids' school. I went to the event prepared to discuss our profession with one class, but was pleasantly surprised that I got bumped to the main stage and presented to 120+ 7th and 8th graders for close to 30 minutes. I wasn't quite sure what to expect, but started off the discussion about what an appraiser does and what the role of an AMC is. We talked about how they would know how much something is worth if there wasn't a price tag (get an appraisal, of course!) and the variety of things you can get an appraisal on - paintings, jewelry cars, etc.

Being middle schoolers, I had no idea how they were going to take the topic. To my pleasant surprise, they were really interested in the appraisal business and had tons of questions! Some of the things they wanted to talk about were:

  • How long does an appraiser spend in a home?
  • What does he do when he's not in the home?
  • How much does an appraiser make?
  • How much time does it take to complete an appraisal?
  • What education is needed?
  • Does Dart do internships?
  • What celebrity homes have we appraised?


It was an awesome experience, and it was great to share information with so many kids who might never have considered a career in the appraisal business. Maybe we even identified some future appraisers!


Thanks as always for your feedback and suggestions. I hope everyone has a happy and safe Memorial Day!