A quartet of appraisal trade groups this week offered the Senate Banking and House Financial Services Committee proof that the problem of pressure on appraisers is reaching pandemic proportions.
The lawmakers now have the ball and what they do with it could go a long way in determining the future health of the appraisal industry.
The Appraisal Institute, American Society of Appraisers, American Society of Farm Managers and Rural Appraisers, and National Association of Independent Fee Appraisers sent each member of the committee a copy of the executive summary of October Research Corp.’s 2007 National Appraisal Survey. They also included a number of recommendations for lawmakers to consider.
One objective is to identify mortgage-related fraud as a criminal act and establish penalties that are consistent for appraisers, mortgage brokers, lenders, realty agents and others involved in fraudulent activity related to a mortgage transaction.
There are a number of other equally important objectives that Valuation Review will discuss in the coming weeks.
The trade groups contend that an increase of resources for law enforcement agencies to investigate and prosecute mortgage fraud cases is also needed.
Every good battle has a two-pronged attack and this fight shouldn’t be any different.
In addition to seeking new legislation to toughen penalties and increase education and professional requirements, the appraisal industry needs to attack the problem from a second side.
The valuation industry must define best practices and make sure everyone in the valuation process is talking the same language. Click here for the full article.