Industry NewsMortgage

Report: Lenders blacklisted appraisers

Nonprofit investigates lenders' valuation practices
Published on Apr 15, 2009

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by CareyBot

A nonprofit that specializes in investigative journalism says it's obtained copies of blacklists that lenders used during the housing boom to boycott thousands of appraisers who refused to inflate home values.

In a story examining the role of appraisals in the housing boom and bust, the Center for Public Integrity says it also found many appraisers who bowed to pressure from lenders to "hit the numbers." The practice "helped pump air into the housing bubble that led to widespread economic devastation," the story concludes.