WHILE THE APPRAISAL is critical to the reversemortgage process, conducting an informed and accurate appraisal is neither simple nor straightforward. A variety of issues and consumer trends are shaping how appraisers and appraisal management companies (AMCs) across the country must manage their business. One of the most urgent appraisal challenges is determining how to balance the rising volume of required appraisals with the limited number of qualified appraisers. “Over the last five years or so, we’ve seen an increase of volume anywhere from 48 to 70 percent for appraisers,” says John Dingeman, chief appraiser, Class Valuation, Troy, MI. “That amounts to about 200 to 300 appraisals per year. Now, consider that appraisers report that it takes approximately six to eight hours to complete an appraisal on a standard property.” Clearly, many appraisers already are working at capacity. “We were optimistic in early 2021 that we might have been moving past the appraiser shortage and capacity issues we’ve seen,” notes Josh Van Horn, chief appraiser, Mortgage Information Services, Cleveland, OH. “The reality is that with interest rates remaining low—and with high demand from both the reverse mortgage and forward mortgage sectors—we’re still experiencing appraisal delays due to limited appraiser capacity.” That combination of high volume and limited appraiser capacity is, in turn, affecting appraisal fees. “Fees are dependent upon the geographical area the property is located in, the complexity of the appraisal assignment, and the capacity of the appraisers working in that area,” Van Horn continues. “Appraisers are choosing now to take different approaches to how they manage their workload, which impacts our ability to even gauge Appraising the Industry Veterans Explore Trends in Reverse Mortgage Appraisals By Robert Bittner John Dingeman Josh Van Horn 24 REVERSE MORTGAGE / MARCH-APR I L 2022
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