Alternative appraisals are becoming the new normal for lenders

In spring 2020, following the onset of COVID-19 in the U.S., record-low interest rates created a housing boom in the midst of the most disruptive period in recent history. Increased home sales combined with nationwide lockdowns created a unique challenge for lenders who needed to determine the value of homes without physically being onsite to conduct an appraisal.

Industry adjustments to social distancing restrictions (including eased federal guidelines) paired with a desire to reduce costs and increase the efficiency of the appraisal process led to the increased adoption of alternative valuation products among lenders. This was a drastic change for the industry. In a very short period of time, financial institutions across the country discovered that these products provide an elegant and cost-effective alternative to the traditional appraisal process.

Hybrid appraisals are one tool in the alternative valuation product toolbox that lenders are now using regularly. In this blog post, we’ll discuss how this flexible alternative to traditional home valuation could save your institution time and money during the appraisal process.

 

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