813.910.8020 Apply Now

Mortgage Broker Tampa, FL | Mortgage Lender Tampa Florida | Marimark Mortgage

  • Home
  • Homebuyers
  • Homeowners
  • Realtors
  • Investors
  • About Marimark
  • Contact Us
  • Mortgages
  • Apply Now
  • Current Mortgage Rates
  • Calculators
  • Testimonials
  • Blog
  • Videos
  • Featured In
Home / Blog / Home Loan Appraisals / Can I Select My Own Appraiser for a Home Loan?

Can I Select My Own Appraiser for a Home Loan?

March 13, 2022 By Mary Catchur

Learn whether you can select your own home loan appraiser

Whether purchasing a home or refinancing, obtaining a mortgage requires getting the home appraised to determine the home’s market value.

Whether you are the buyer, owner, or seller, it is essential to understand how the appraisal process works, including who selects the home appraiser.

Related: Why Might You Need an Appraisal? How do Appraisals work?

Home Valuation Code of Conduct and Home Loans

The Federal Reserve established the Home Valuation Code of Conduct (HVCC) in 2009 to eliminate conflict of interest, mortgage fraud, and other forms of misconduct in the mortgage industry. In addition, the HVCC seeks to ensure property appraisers perform fair valuations when conducting home appraisals.

So, can the borrower hire the appraiser? The answer is no. None of the parties involved, including the buyer, seller, lender, or real estate agent, get to determine who completes the home appraisal.

Instead, an Appraisal Management Company (AMC) contracts appraisers to perform the appraisal, independent of the lender. Appraisers will sign up with these AMCs and are not directly employed or affiliated with the AMC. Therefore, mortgage lenders cannot speak with home appraisers and must direct communication concerning the appraisal to the AMC, from ordering the appraisal to resolving any possible issues.

Before HVCC, lenders and borrowers were able to select their appraisers. However, after the housing market collapse, many appraisers expressed that they often felt pressured by lenders to inflate home valuations. As a result, the Federal Reserve implemented the HVCC to limit the communication between lenders and appraisers and mitigate some issues with increased home values during the real estate boom.

Pros and Cons of the HVCC

There have been pros and cons of this new legislation. While the appraiser still knows the desired value of the home, as they must receive a copy of the purchase contract, the pressure to come in at that value is alleviated. They no longer rely on the lender who placed the order to continue sending them business. In addition, appraisal standards are strict to ensure property appraisers conduct inspections appropriately. The AMC reviews the submitted appraisal before sending it to the lender to ensure it complies with the appraisal standards.

On the negative side, the appraisal cost has increased from an average of $250-325 to $495 and up. The appraiser’s amount to perform appraisals is around the same or even less due to the AMC taking on the appraisal costs. The consumer will compensate the AMC for these costs.

There have also been complaints that AMCs often send out appraisers not from the immediate area and may not be as familiar with the nuances of specific markets. It can also be cumbersome when issues arise with the appraisal, and all questions, comments, or requests for additional consideration must go through the AMC.

There were initial issues with transferring appraisals between lenders if a new lender had to get involved for various reasons. Still, many lenders will allow transfers to and from other lenders if they confirm that the appraisal meets HVCC standards.

Marimark Mortgage 

Marimark Mortgage is based in Tampa, Florida, and serves the mortgage needs of homebuyers, homeowners, and investors in Florida, Virginia, and Pennsylvania.

We specialize in mortgages for first-time homebuyers, conventional home mortgages, refinance loans, reverse mortgages, and FHA, VA, and USDA mortgage options. In addition, we’ve worked extensively with cash-out refinancing and help clients to lower their monthly mortgage payments.

To get started with a mortgage to buy your next home, please fill out our Quick Mortgage Application or contact us.

Opt In Image
Stay Informed, It's Your Money
Marimark Mortgage Newsletter

The Marimark Mortgage Newsletter will keep you informed with important events in the mortgage industry that could impact your finances.

We especially focus on ways to save money on your current and future mortgages. And, we continually share the information we share with our clients, because we believe informed consumers are the best consumers.

Real estate agents, and other professionals in the industry, will receive an ongoing wealth of information that will help them serve their clients.

Thank you for signing up!

Filed Under: Home Loan Appraisals Tagged With: home loan appraisals, home loans

Opinions, estimates, forecasts and other views contained in this page do not necessarily represent the views of Marimark Mortgage or its management and should not be construed as an offer to provide financing at the rates or terms mentioned. Due to market fluctuations, interest rates are subject to change at any time and without notice. Interest rates are also subject to credit and property approval. Although Marimark Mortgage attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. Information from this page may be used with proper attribution.

Save with a Mortgage from Marimark

Whether you are buying a home or refinancing, you can save with a mortgage from Marimark Mortgage!

    Search

    Post Categories

    Testimonials

    Refinancing with Mary an absolute pleasure

     
    Refinancing with Mary has been an absolute pleasure. I have never been through the process before and she took the time to explain each step. She was prompt (had a rate locked in right away) and most importantly always answered the phone or emails almost immediately! The communication line alone made the refinancing process every bit worth it. Would recommend to anyone, and will be back for any future purchases! Bret Brennan, March 2021
    See More Reviews
    Marimark Mortgage LLC
    5327 Primrose Lake Circle
    Tampa, FL 33647-1328
    (813) 910-8020
    (866) 910-8020

    Accessibility
    Privacy Policy
    Terms of Service
    Sitemap

    Reviews

    Website Testimonials
    Google Reviews
    Zillow Reviews
    Trulia Reviews
    Facebook Reviews
    Yelp Reviews
    BBB A+ Rating

    FOLLOW US

    • ‎
    • ‎
    • ‎
    • ‎
    • ‎
    • ‎
    Marimark Mortgage is a BBB A+ Accredited Business

    Recent Posts

    • FHA Announced a 30-Basis Point Reduction to Annual Mortgage Insurance Premiums
    • How Can You Improve Your Credit Score?
    • Historical Mortgage Rates From The 1970s
    • What You Need to Know About Mortgage Forbearance
    • Top Tips to Save Money for a Down Payment

    © 2023 Marimark Mortgage, LLC All Rights Reserved. | Internet Marketing by Image Building Media. | RSS Feed

    Reviews / Recommendations: Google, Zillow, Trulia, LinkedIn, Facebook, Yelp, BBB

    Licensed in Florida by the Office of Financial Regulation, Mortgage Lender License #MLD77.
    Licensed in Virginia by the Virginia State Corporation Commission, License MC#4556.
    Licensed in Pennsylvania by the Department of Banking and Securities, License #40222.
    NMLS#248318 – www.nmlsconsumeraccess.org.