Automated Valuation Model

Underwriting: Property Value 

As a Direct Endorsement (DE) underwriter and the vice president of operations at Urban Financial Group, I’m often asked by reverse mortgage brokers and loan officers about appraisals—in particular, how property value is determined. For sales professionals, having a good understanding of this aspect of underwriting can actually help you improve customer satisfaction and contribute to a smoother loan process.The Appraiser and Underwriter’s Responsibilities Both the appraiser and the underwriter have a responsibility to the FHA to provide a quality appraisal report. The appraiser performs an on-site inspection of the property and compares it to nearby sales (called “comparables” or