How does an appraiser get selected by a lender, or what's the process for connecting an appraiser with a property that's being bought?
Appraisers are typically asked by a lender or appraisal management company to submit their recent credentials (basically a resume), current license and current E/O insurance. With those, they can be placed on an “active or approved appraiser list.
Some lenders will require a background check or will refer to the Appraisal Subcommittee Website, where all licensed appraisers are registered nationally. An Appraiser performing an FHA or VA inspection (for FHA or VA loan) needs to be registered with those entities specifically.
A lender typically has multiple appraisers on their approved list and will divide orders according to territory that has been submitted by an Appraiser.
An Appraiser on a lender's approved list is not an employee of the institution. The Appraiser is typically a sub-contract position with numerous clients (lenders) who will provide an unbiased opinion of market value to the client.
A lender does have authority to remove an appraiser from their list if they choose. An Appraiser may remove themselves from an approved list and refuse any order that may be a possible conflict. No lender or appraisal management company can influence an Appraiser at any time. This guideline is to ensure the opinion provided is truly unbiased.
Kathy Bruno of BC Appraisals