Skip to main content

Reverse Mortgage Appraisers Still Optimistic Without Desktop Option

Navi Persaud
Nov 09, 2020
Simple house in Maine.

When it comes to the expiration of a desktop-only appraisal option that was implemented due to the COVID-19 pandemic, reverse mortgage appraisers aren't sweating it. The desktop-only option expired at the end of October but reverse mortgage appraisers believe that the exterior-only option will likely be a better way of conducting business, according to Reverse Mortgage Daily.

"In April, at the onset of the pandemic, less than 15% of FHA appraisals were completed using appraisal flexibilities," said John Dingeman, chief appraiser for Class Valuation based in Troy, Michigan, according to RMD. "Of that subset, the ‘desktop’ option accounted for just 20%. Over time, while the number of appraisals utilizing flexibilities has remained steady, the number of ‘desktops’ has declined to less than 10%."

"HECM loans very, very rarely used a desktop [appraisal], and the exterior [were used] virtually never, with maybe a couple of exceptions here and there," added Mark Johnson, president of LRES Corporation, a national appraisal management company. "And when I say that, I’m talking about originations there. Sometimes, we have different paths for servicing, depending on the properties which are occupied or not occupied. So, you might do an exterior, so you don’t disturb the occupants. But that’s not really a result of the pandemic. It’s just [due to] workflow."

In fact, Johnson told RMD that appraisal professionals that he has spoken to do not believe that desktop appraisals would be a viable option moving forward. Johnson said that while The U.S. Department of Housing and Urban Development and government-sponsored enterprises rank desktop appraisals as equal to or better than the exterior solutions, many in the industry feel that exteriors would be a better solution.

Published
Nov 09, 2020
More from
Reverse
Opportunities In Reverse 

For seniors who still have a mortgage, 40% are looking to use the equity they’ve built to eliminate their monthly payment. 

Reverse
Oct 19, 2021
HECM Endorsements Plummet More Than 14 Percent

Home equity conversion mortgage endorsements plummeted 14.3% in August 2021 to 3,679 loans.

Reverse
Sep 14, 2021
Reverse Mortgages Aren't Expanding Into Broader Mortgage Business

The reverse mortgage sector has remained strong accounting for more than 4,000 loans a month, according to Reverse Mortgage Daily, however, growing the business further has been on the back burner.

Reverse
Jul 28, 2021
FHA Adds COVID-19 Recovery Options For Forward And Reverse Borrowers

The Federal Housing Administration announced additional COVID-19 recovery options to help both forward and reverse homeowners who are facing hardships as a result of the pandemic.

FHA
Jul 26, 2021
RMF Revamps Its Borrower Qualification Process To Increase Efficiency

Reverse Mortgage Funding, LLC (RMF) is taking a new approach to the borrower qualification process for those seeking a reverse mortgage. The process was created to drive efficiency during the approval process and increase reverse mortgage market growth.

Reverse
Jul 20, 2021
Reverse Mortgage Endorsements Slide By More Than 4 Percent In June

Reverse mortgage endorsements decline by 4.4% to 4,160 loans, increasing the streak of more than 4,000 loans per month, according to Reverse Mortgage Daily.

Reverse
Jul 06, 2021