Industry NewsMortgage

Appraisers say oversight is lacking

Regulators blame inadequate state funding

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Some regulators who oversee appraisers are taking issue with an Associated Press story that characterized oversight of the industry as "crippled" and "ineffective" despite an overhaul of the system after the Savings and Loan crisis.But four other groups that represent appraisers themselves said the story -- the product of a six-month investigation -- underscores the need for better enforcement of existing laws.The AP's investigation of the regulatory system put in place by the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) concluded that more than two dozen states and U.S. territories failed to investigate and resolve complaints about appraisers within a year of receiving them, as required by law.An independent federal agency authorized by Congress to conduct field reviews and audits of appraisers, the Appraisal Subcommittee, has only four auditors and has not had a permanent director since the end of 2007, AP said. As a result, regulat...