Appraiser Shortage Could Gum Up the Works at Mortgage Lenders
American Banker, May 20, 2015
Mortgage lenders are facing a potential threat to their business that has nothing to do with new regulations or the uneven economic recovery: a persistent shortage of home appraisers.
Since the height of the housing boom in 2007, the number of individuals certified or licensed to do home appraisals has declined by 23,000, or 28%, according to the Appraisal Institute.
It’s not a crisis — at least not yet — but with older appraisers retiring and fewer and fewer college graduates entering the profession, some industry observers say that, in five to 10 years, there won’t be enough appraisers to handle the volume of home sales. For lenders, that could mean higher appraisal fees and long delays in closing loans — at a time when technology could be speeding up the process.
“In five years the banking industry will not have many appraisers left to do their mortgages,” said Rick Hiton, the owner of the Chicago appraisal firm Rick Hiton & Associates.