Bank of America Outsourcing part of Appraisal Process

When financing the purchase of a home, one of the issues buyers and sellers must contend with is the appraisal.  Banks will only loan money based on the appraised price of the home.  This makes sense as neither the bank nor the buyer want to start off upside down with regard to home value.  When a home appraises under the purchase price; the buyer can bring more money to the table, the seller can reduce the purchase price or the bank can turn down the loan.  Often a compromise occurs.  It is imperative that a skilled appraiser who is knowledgeable of the local real estate market values and trends performs the appraisal.  It is not unusual to have an appraiser who is not familiar with the local market provide an appraisal that portrays a value lower than the true value and consequently the transaction fails to consummate.  Current regulations attempt to ensure unbiased appraisals and require the selection of the appraiser through a third party company.  This has the unintended result of ensuring the appraiser is shielded from repercussions of a bad appraisal.  Once submitted, it is extremely difficult to successfully challenge an appraisal.

According to a recent Bloomberg report, Bank of America has opened an office in Bangalore, India to review home-valuation reports.  This move eliminated similar jobs in the Charlotte, North Carolina location.  The U.S. based reviewers touted at least 5 years experience as appraisers and conformed to rigid industry standards to ensure accuracy.  The India based group will be using checklist methodology to ensure completeness.  The LandSafe business, which was the appraisal division of Bank of America made $78.7 billion in loans in 2012.

The end result; more U.S. jobs shipped overseas, greater profits for Bank of America and the impact on the consumer…will be determined at a later date.

For information about Venice Florida homes for sale, call Gulf Shores Realty at 941-488-6644 or visit http://gulfshoresrealty.com/ .