Over a third of appraisals during the third quarter featured property quality or condition ratings that did not match previous ratings, according to an Oct. 19 report from Platinum Data Solutions.
Platinum reviewed more than 300,000 appraisals using its appraisal quality technology RealView and found that 39% of appraisals featured these inconsistencies. Discrepancies in property quality and condition ratings can cause significant underwriting delays, Platinum noted.
“Causes aren’t easy to determine, so they need to be investigated,” said Phil Huff, president and CEO of Platinum Data Solutions, in the report. “Doing this after [Uniform Collateral Data Portal] submission opens lenders up to numerous issues. Costly delays are just one of them.”
The delays caused by these conflicts can range from one day to several days. The causes include human error, appraiser subjectivity, or actual changes to the property’s condition. Platinum also pointed to appraisal fraud as a common cause, noting that the government-sponsored enterprises cited it as the top origination fraud scheme trend in 2014.