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It is no question that grocery stores, hospitals and banks need to stay open throughout the current pandemic, but what about appraisers? The answer to this question is not as easy as you would think. Here in Utah, we are deemed essential and still find ourselves going out almost daily on inspections. This means that we are still going into people’s houses and interacting with them face to face.
To mitigate risks, we wear masks and sanitize our hands before and after each inspection. Fannie Mae and Freddie Mac have come out with a modified appraisal that they will temporarily allow in place of full appraisals. These modified inspections are done from the street and do not require going into the home. Lenders need to individually begin accepting these reports and request them from appraisers. Thus far we have seen very few.
One of the reasons that we have seen very few is likely because of the limitation placed on the new report type, that it cannot be used for cash out refinances. With rates as low as they have been and people as worried about their, short term, finances as they currently are, cash out refinances have been the vast majority of what is being ordered.
In states that have a shelter in place order in effect, appraisers are often not allowed to perform interior inspections. Some states have come out and specifically allowed appraisals; others have specifically disallowed them, but most states have not addressed it specifically. Many of these other states leave it up to the lender and appraisal’s discretion. It all depends on where you live, what lender you go with and what type of loan you are going to use the appraisal for.
Good luck out there, and stay safe.
- Jordan Jorgensen
Photo byMichael LongmireonUnsplash
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