Due to the very low rates and recent surge in loan volume, there are simply not enough appraisers to meet the current demand.
So, despite the fact that JVM pays a large rush fee (that we eat and do not pass on to borrowers), appraisers are not picking up our orders as fast as usual. This is increasing our turn times by a few days.
We are temporarily quoting 10 day appraisal contingencies, which is much longer than typical for JVM but still far faster than industry averages right now.
Finally, the appraiser shortage is not just b/c of the surge in loan volume. It is also b/c there are very few new appraisers coming into the field. Licensing and training requirements are too onerous; appraising itself is often very difficult (especially in hot markets) b/c there so many guidelines to follow; and the job is often thankless.
Borrowers, Realtors and lenders often accuse appraisers of a lack of diligence when it is more often a case of the borrower, Realtor or lender not fully understanding appraisal guidelines.
Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646
