This week, the appraisal community responds to a recently proposed set of requirements for Appraisal Management Companies (AMCs). Buyer demand continues to grow despite a lack of affordable housing in today’s market. Bank of America becomes the latest bank to go digital with the launch of its new digital mortgage platform. Plus, check out an interesting article on the intersection of man and machine within the appraisal industry. Keep reading for the latest in appraisal news.
Agencies issue proposal for new AMC rule affecting minimum requirements
In late March, six agencies (FDIC, Federal Reserve, OCC, CFPB, FHFA, and NCUA) proposed a rule that would change the minimum requirements for state registration and supervision of appraisal management companies (AMCs). Under the proposed rule, there would be eleven new AMC requirements in participating states. This has sparked some discussion in the appraisal community. See how the Foundation of Real Estate Associates graded the new AMC rule here. And listen to Phil Crawford’s take here.
Housing hurdles can’t hold back buyer demand
Homebuyer demand continues to rise, even as real estate professionals continue to worry over mortgage rates and low inventory. In the past couple of weeks, interest rates decreased slightly. However, they are expected to go back up soon. Not surprisingly, this sent consumers into a frenzy. The problem? Inventory shortage. Read more about the affordable housing crisis and what some cities are doing to address it.
Bank of America announces new digital mortgage platform
Following suit with other megabanks like JPMorgan Chase, Wells Fargo, and CitiMortgage, Bank of America announced Wednesday that it’s rolling out a digital mortgage platform. Bank of America’s new Digital Mortgage ExperienceTM strives to ease the mortgage application process by allowing clients to quickly apply online or through the mobile banking app. The platform responds to increasing consumer demand for (and comfort with) digital tools. Check out Bank of America’s press release for the official announcement, plus some interesting insights into Americans’ perceptions of the future of digital technology in real estate. (For example, 6% of Americans believe all appraisals will be done via drones in the next 10 years.)
The intersection of appraiser and machine
As an appraiser, you may worry that your job could be replaced by Automated Valuation Models (AVMs) and other forms of artificial intelligence (AI) sometime in the not-so-distant future. But aren’t there some valuation-related tasks that simply cannot be performed by machines? Appraisals are part art, part science. So why not combine the best of both worlds? This article argues, “When you ‘mash up’ the best of what appraisers do with the supercomputing power of a machine, everybody wins.”
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