Reverse Mortgage Appraisals

When obtaining a reverse mortgage, getting the residential propertyappraised is a required step. AmeriMac’s staff of expert appraisers have a comprehensive knowledge of the reverse mortgage appraisal process, and look forward to serving you. This process contains three major steps:

Initial Appraisal Inspection

The appraiser walks through the home, taking photos that help in the research process. They will focus on areas of the residential property that may need repair and other features that could add to, or subtract from, the home’s ultimate valuation.

Local Market Research

With photos and notes from the inspection phase, the appraiser then conducts further research into comparable homes in the local market. This research can include county tax records and satellite photos (when available and applicable).

Appraisal Valuation Opinion

After gathering comparables and reviewing all relevant information, the appraiser delivers their expertly-informed valuation opinion to the homeowner and reverse mortgage lender.

What is AmeriMac’s Role in a Reverse Mortgage Appraisal?

As an AMC, AmeriMac’s role is to ensure no interaction between the appraiser and the lender. This guarantees an objective, unbiased, and uncompromised valuation. In some cases of a reverse mortgage, a second appraisal may be required. In the event that two appraisals are requested, the lowest value is used in the reverse mortgage. Once completed, the valuation is good for 120 days from the date of the initial appraisal inspection. A 30-day extension is granted in some circumstances depending on the market conditions.

What are the Different Kinds of Reverse Mortgages?

Reverse mortgages are seen as an attractive option as home values grow and the population ages. This type of loan is for homeowners above the age of 62; they have enough home equity to borrow against its value to receive these funds. The age requirement can fluctuate depending on the state and type of loan the homeowner applies for. The three types of reverse mortgages available include single-purpose, proprietary, and federally insured reverse mortgages. The details on these products are provided below:

• Single-Purpose reverse mortgage: This is the least expensive option offered by state and local government agencies and some non-profits.
• Proprietary reverse mortgage: These private loans are backed by the companies themselves.
• Federally Insured reverse mortgage: These loans, also known as Home Equity Conversion Mortgages (HECMs), are backed by the federal government and the U.S. Department of Housing and Urban Development (HUD). Unlike Single-Purpose loans, they can be used for any purpose.

Typically, the older the homeowner is, the more equity they have in their home, and the less they owe on their mortgage. This increases the amount of money they can get from a reverse mortgage.

Can the Homeowner Challenge the Appraisal?

A homeowner is allowed to challenge an appraisal opinion valuation by submitting a request for reconsideration. This request must be accompanied by three recent comparables. The appraiser is then required to review these new comparables and either use them or discuss why they cannot be used. 

Reverse mortgage appraisals demand momentous time and effort to complete successfully. Additionally, they bring their own special regulatory obligations. Contact us today and see how the appraisal specialists at AmeriMac process these complex procedures deftly within a reasonable turnaround time.