Home appraisers are struggling to keep up with a sudden surge in Boston’s real estate buying and refinancing. As a result, turnaround times for appraisals are increasing, causing delays in the underwriting process, HousingWire reported this week.
HousingWire said a survey of lenders showed that many are being quoted two to three weeks for an appraisal, which is far longer than usual. In one case, a lender was told it would take 10 days before an appraisal, but it actually came back 27 days later. And in hot markets like Colorado, some say the appraisal process can take up to four weeks, or longer.
The industry is also held up by a limited number of underwriters available to keep up with demand, said Brian Covey, vice president of regional production at LoanDepot.
The problem is that mortgage volumes have surged ever since lockdown restrictions began easing in May. Low mortgage rates have created more demand for appraisers and underwriters than they can handle.
The only good thing is that appraisal waivers are now rising in some markets.
But some appraisers argue that automated technology is not as transparent as having a human come in to appraise a property.