Industry News

Appraisal groups seek more independence in lending process

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Four of the largest organizations for real estate appraisers are asking bank regulators to consider requirements stressing the need to enforce an independent appraisal process in mortgage lending. "We can't stand by while those with a vested interest in a transaction try to use appraisers as a rubber stamp," stated Don Kelly, a spokesman for the Appraisal Institute. "In their effort to safeguard consumers from shoddy subprime mortgages the agencies have overlooked the importance of selecting ethical, professional and independent appraisers." He added, "To address this debilitating problem for lenders and consumers, we need help from the entire real estate community to develop and accept an industry-wide statement of 'best practices' on real estate appraisal and mortgage lending. With that we start to educate and commit all parties to the importance of an independent appraisal process." The Appraisal Institute, American Society of Appraisers, American Society of Farm Managers and Rura...