Increased utilization of alternative real estate valuations could have a negative impact on the quality of residential mortgage-backed securities. But there are some positives to the shift.
In an effort to cut operational costs, increase efficiencies and address the declining number of real estate appraisers, home lenders are expected to use more appraisal alternatives.
The alternatives include hybrid appraisals, broker price opinions and automation valuation models. Each method presents different strengths and challenges.
Source: Mortgage Daily