My New Blog

I never imagined that I would become a blogger, but here I go. As an Appraiser I am constantly looking at new and updated information on the housing market and local values. The newspapers provide a lot of information that the public looks at, maybe understands maybe not, makes an impression and moves on. Todays Washington Post is such an example.

The headline reads "Fannie, Freddie Agree to Tighten Appraisal Rules". The first impression is that those 'wild and crazy' appraisers need to be reigned in. But the real thrust of the article is the recent agreement between New York Attorney General Andrew Cuomo and Fannie Mae and Freddie Mac on protecting appraisers from lenders who pressure them to make specific values. These new rules are really guidelines that prohibit lenders from influencing appraisers by threatening to withhold business and limiting lenders from using 'in-house' appraisers that might not be objective. These new rules would also restrict the lenders from owning the appraisal companies that they use for similar potential conflict of interest problems.

What is interesting to me is that appraisers have always had to follow the USPAP (Uniform Standards of Professional Appraisal Practice) guidelines that clearly prohibit attempts to influence or pressure appraisers by outside parties. In that situation appraisers should refuse the assignment and report the offense.

Hopefully, as dishonest loan officers, lenders and appraisers are weeded out of the market by the recent downturn, those of us that are still working to service the public and provide honest valuations that lenders and borrowers can have confidence in, won't have to be "reigned in". Then the perception of the appraisal field will return to that of the integrity and objectivity the profession projected when it was created. 

If you'd like to read the whole article here's the link: http://www.washingtonpost.com/wp-dyn/content/article/2008/03/03/AR2008030301374.html