Home Appraisals Remain a Problem, AP Probe Finds

Winston-Salem Journal (NC) (08/18/08)
A review of thousands of state and federal documents and interviews with more than 35 real estate appraisers across the country over a six-month period by the Associated Press suggest that the appraisal process is broken, with 20-plus states and U.S. territories unable to investigate and resolve appraisal complaints within the one-year federal deadline. The study also determined that federal regulators do not use the one tool they have to force state compliance because it would stifle mortgage lending on the statewide level and that state appraisal boards and the federal oversight agency lack sufficient staff to conduct investigations. Most of the appraisal professionals interviewed said realty agents and mortgage brokers often pressure them to boost property values to reach a specific number. While New York Attorney General Andrew Cuomo orchestrated a deal with Fannie Mae and Freddie Mac that will establish an appraisal watchdog next year, observers say the system does not offer new regulations or enforcement tools.