An appraisal story from Sunday's Dallas Star-Telegram:
Time to reappraise system that's all too open to abuse
By Mitchell SchnurmanStar-Telegram Staff Writer
Real estate appraisers get paid $400, tops, for their role in a transaction that generates tens of thousands of dollars in fees. And they're supposed to hold the line and say no?
Little wonder that things got so out of whack in residential real estate.
In the past few months, as elected officials and regulators examine the meltdown in housing, more are focusing on appraisals. These independent assessments of a home's value are required for every mortgage, and they set the parameters on a loan.
Lawsuits have been filed recently against major lenders, alleging that they pressured appraisers to trump up home values so borrowers could get bigger loans. And appraisers are accusing lenders, home builders, mortgage brokers and real estate agents -- the major parties who rake in most of the fee income -- of threatening to blacklist them if they don't play ball.
California and Florida get most of the attention, because home prices grew by double-digit rates for several years and are now plummeting. But prices have been falling nationwide, too, and many fear that deeper declines are ahead. Last week, the Federal Reserve cited the housing market when it again cut interest rates................
http://www.star-telegram.com/business/story/449898.html
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Time to reappraise system that's all too open to abuse
By Mitchell SchnurmanStar-Telegram Staff Writer
Real estate appraisers get paid $400, tops, for their role in a transaction that generates tens of thousands of dollars in fees. And they're supposed to hold the line and say no?
Little wonder that things got so out of whack in residential real estate.
In the past few months, as elected officials and regulators examine the meltdown in housing, more are focusing on appraisals. These independent assessments of a home's value are required for every mortgage, and they set the parameters on a loan.
Lawsuits have been filed recently against major lenders, alleging that they pressured appraisers to trump up home values so borrowers could get bigger loans. And appraisers are accusing lenders, home builders, mortgage brokers and real estate agents -- the major parties who rake in most of the fee income -- of threatening to blacklist them if they don't play ball.
California and Florida get most of the attention, because home prices grew by double-digit rates for several years and are now plummeting. But prices have been falling nationwide, too, and many fear that deeper declines are ahead. Last week, the Federal Reserve cited the housing market when it again cut interest rates................
http://www.star-telegram.com/business/story/449898.html
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