Question: Can I request the bank use a specific appraiser during my refinance? 

Answer: No, but you can request they use an appraiser with a Professional Designation. 

Ask for an Appraiser with the CDA Designation.  You will be glad you did!

Craig Stewart holds a Professional Designation with the North Carolina Professional Appraisers Coalition (NCPAC).  The CDA (Coalition Designated Appraiser) signifies an appraiser with expert skills and extensive experience in the field of residential real estate appraisal.  The Designation is bestowed on NCPAC Member Appraisers after passing a thorough written exam and completing a demonstration appraisal.  You can be assured a quality appraisal if you have a Coalition Designated Appraiser perform your next appraisal.  Ask for an appraiser affiliated with the North Carolina Professional Appraisers Coalition to complete your next appraisal.

NCPAC is an affiliate member of the Association of Appraiser Regulatory Officials (AARO) and is a member of The Appraisal Foundation Advisory Council (TAFAC).   NCPAC currently chairs the emerging issues committee of TAFLAC.

MAJOR PROBLEMS WITH THE CURRENT APPRAISAL PROCESS

Over the past few years many friends and acquaintances have told me stories about receiving what they deem to be "poor quality" appraisals when going through the mortgage application process.  Mortgage lending rules have changed dramatically over the past few years.  Lending rules now prohibit a homeowner or loan officer from selecting a particular appraiser for a particular appraisal assignment.  Lenders now have to maintain their own rotation of approved appraisers or rely on an Appraisal Management Company (AMC) to manage this task for them.  These new lender rules have led to the proliferation of AMC's. I have found the typical AMC's priority is not the quality of the appraisal, but how much money they can make off the appraisal process.  I rarely have an AMC representative ask me how much experience I have appraising a particular type of property.  However, they always ask what my "best" fee is. 

Do you know often the entire appraisal fee paid by you, the borrower, often doesn't go to the appraiser.  The typical AMC attempts to "split" the appraisal fee with the appraiser.  Would you be surprised if you paid $450 for an appraisal and the appraiser was paid $200 with the remaining $250 going to the AMC for "appraisal management".  Does this seem right?  Many lenders and AMC's don't want you to know how your "appraisal fee" was split.

Typically, this "fee split" structure leads to the AMC trying to maximize profit by finding the cheapest appraiser without regard for the eventual appraisal quality or for the  professional experience of the appraiser.  In my opinion, this typical AMC mentality of getting the cheapest possible appraisal with disregard to quality or appraiser's experience has lead to the typical AMC using less experienced appraisers or appraisers that take shortcuts. 

HOW TO ENSURE YOU GET A QUALITY APPRAISAL

When applying for a mortgage I recommend you request the lender or AMC use an appraiser who is a member of an association of professional real estate appraisers, such as NCPAC.  Better yet, request the appraiser hold a Professional Designation from a professional appraisal organization.  While you are not permitted to request a specific appraiser, most lenders or AMC's will allow you to request an appraiser who is a member of NCPAC.  In fact, I just applied for a refinance. I specifically requested the bank use an appraiser who holds a Professional Designation.  Guess what.  They found someone who holds a Designation.  I am confident I will receive a quality appraisal.     

Buying or refinancing a home is one of the biggest financial decisions of a person's life.  Do you really want an appraisal from a "discount appraiser" who is likely to take shortcuts and produce a poor quality appraisal?  Do you want to spend $450 on an appraisal only to find out the appraiser was only paid $200 and the bank took the other $250 for "managing the process".  A proper appraisal takes a good appraiser a significant amount of time.  I would want the most experienced, most professional appraiser I can get.  I would want an appraiser affiliated with the North Carolina Professional Appraisers Coalition to do my appraisal.

Ask for a CDA designated appraiser with the North Carolina Professional Appraisers Coalition to do your next appraisal.  You will be glad you did!