Bugs is correct in that from this point forward, WaMu will be getting, on average, poor quality appraisals and also poor quality reviews of appraisals.
They did have very good appraisal reviewers who knew their individual markets very well – but that’s gone now. In the short run, this move will save them some money by paying low fees for less than average quality appraisals, but in the long term, it can only cost them money as the quality of their loan portfolio will suffer.