“It takes a lot more time, a lot more effort versus a refinance. The private lending industry is getting pushed a little more to the backburner when it comes to these appraisals, so it’s creating unique challenges,” he revealed.
In response, Tedesco said his company had been working closely with its private lending community to overcome the problems.
“We have flexibility that conventional lenders don’t – our model was built to work with small to midsize lenders,” he said. Utilizing hybrid reports, which allow appraisers to complete key sections of their report without having to be physically present, was one such method.
“There’s a lot of different, unique ways to approach this in the private lending industry. They’re (also) working on new bifurcated hybrid reports and changing some of the modeling,” he added. “That change in mindset is going to be the new normal.”
Read more: John Tedesco, SVP, business development, Appraisal Nation