Thursday, March 28, 2024 | The Latest Buzz for the Appraisal Industry

Be in the Know, Freddie Mac Tells All

In advance of the upcoming Valuation Expo in Las Vegas, Appraisal Buzz reached out to one of the keynote speakers, Scott Reuter, Chief Appraiser and Single-Family Director of Valuation for Freddie Mac.

Scott will be speaking on Tuesday, October 2nd discussing some of the upcoming changes and redesign the industry can expect to see in the future.

Buzz: Scott, thank you very much for taking the time for this interview. Are you able to give our readers a preview into the Fannie Mae and Freddie Mac Policy Update?

Reuter: The GSE updates for the audience will include the most recent policy changes, property eligibility, appraisal requirements, appraisal and marketing trends, the Appraisal Process Modernization projects, and some clarification around the joint UAD Redesign Effort (Forms Redesign).

Buzz: We hear that this year may be extra special as both GSE’s will be engaging directly with appraisers for feedback.

Reuter: As a result of the 2018 FHFA Scorecard initiatives for Fannie Mae and Freddie Mac, both companies have devoted time and resources to these projects. The UAD Redesign and Forms Redesign project is a joint effort between both Freddie Mac and Fannie Mae. This initiative is designed to leverage extensive stakeholder input to update the existing dataset and appraisal forms. The joint working team has a defined protocol and cadence for this outreach, including a focus group session at Valuation Expo.

Buzz:: Is there an opportunity for appraiser feedback in the general session?

Reuter: Yes. Through discussion notes and interactive polling, we will make sure that appraisers clearly have a voice in this process. Additionally, the Joint GSE working group is engaging with appraisers through other outreach efforts. Speaking only for my presentation, I plan on budgeting extra time for discussion around some of the themes that will be covered in the updates and general remarks.

Buzz: How about the Appraisal Process Modernization Initiative?

Reuter: FHFA has designed the Appraisal Process Modernization initiative as independent for each GSE. As such, both Freddie Mac and Fannie Mae are independently conducting research and outreach to support the target measures and objectives of this project. I know each agency has a high-level vision for what modernization looks like, however both are actively working directly with our regulator. Specific engagement on Appraisal Process Modernization initiative would be out of scope for our joint session and updates.

Buzz:: So elements of industry modernization can clearly be discussed, just not as a part of the formal project you each are working on, is that right?

Reuter: Correct. From a practical standpoint it is difficult to discuss updating and defining a new dataset and innovating the valuation space without touching on modernization. It is very clear that analytics and technology are going to be central to a data driven process going forward. There is much innovation happening that we both see in this space.

Buzz: It sounds like there are clear ground rules on engagement here.

Reuter: Indeed. Our regulator has positioned and defined these two major initiatives for us very clearly. We want to respect and be very careful to follow the joint working group protocol, as well as appropriate separation on Appraisal Modernization. That said, engaging with appraisers is always beneficial and listening to their concerns, pain points, and feedback is also important. We look forward to seeing everyone at the Valuation Expo.

Buzz: Thank you for taking time with us today.  See you in Vegas!

There is still time to register for the #1 appraiser conference. Visit our website to learn more.

Brent Bowen

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