Illegal In House Valuations

[djd09]

When Appraisers Rally: Korea Sends the U.S. a Wake-Up Call​

In Seoul, appraisers didn’t write op-eds. They didn’t file quiet complaints. They rallied. And Korea took notice.

On September 29, the Korea Association of Property Appraisers (KAPA) staged a public protest outside KB Kookmin Bank’s headquarters, condemning the bank’s in-house collateral valuations as illegal under Korea’s Appraisal Act. The Ministry of Land had already ruled the practice unlawful, yet banks continued hiring internal appraisers to fast-track high-value loans. KAPA’s response? Signs, speeches, and a full-throated demand for accountability.

Meanwhile, in the United States, appraisers face a quieter, but no less existential, threat. Not just from the GSEs, but from banks and financial institutions that increasingly favor speed over scrutiny. Traditional appraisals are being replaced by automated valuation models, broker price opinions, and hybrid products, cheaper, faster, and often less reliable.

When Appraisers Rally: Korea Sends the U.S. a Wake-Up Call

In Seoul, appraisers didn’t write op-eds. They didn’t file quiet complaints. They rallied. And Korea took notice.

appraisersblogs.com

yeah let the crooked mortgage broker waive them all...and reap what you sow

 

[George Hatch]

I salute those appraisers for organizing and showing up for a protest. Hopefully none of them will get blacklisted for it.

 

[djd09]

Hopefully none of them will get blacklisted for it.

if it is like our corrupt system...you can bet on it

 

[djd09]

Banks intensify clash with appraisers over illegal in-house collateral valuations in Korea​

Banks and appraisers clash over legality of in-house collateral valuations as industry tensions rise



Following the Ministry of Land, Infrastructure and Transport’s legal interpretation and with the parliamentary audit season approaching, appraisers have stepped up their offensive. On the 29th of last month, the Korea Association of Property Appraisers held a rally in front of the new building of Kookmin Bank in Yeouido, Seoul, titled "Condemnation rally against Kookmin Bank's illegal invasion of the appraisal market through appraisers it hires." They claimed that Kookmin Bank selectively appraises mainly high-value properties to cut costs and hastily appraises high-priced real estate averaging 12 billion won in a single day.

According to the association, Kookmin Bank’s self-appraised amounts were 26 trillion won in 2022, 50 trillion won in 2023 and 75 trillion won in 2024, nearly tripling in three years. Kookmin Bank’s in-house appraisal performance equates to appraisal fees of 55 billion won, which is 20 billion won more than the appraisal corporation with the largest collateral appraisal performance (35 billion won).

An industry source said, "Appraisers employed by banks inevitably face pressure to meet loan performance targets, which can lead them to overvalue collateral," adding, "Banks even select high-value real estate for their own appraisals and pass lower-fee, more complex properties to external appraisal firms, harming the industry."

Kookmin Bank and other banks stressed that the measures are meant to improve the efficiency of procedures for determining collateral value for loan execution and to reduce costs. A commercial bank official said, "If external appraisals are mandated unconditionally, those costs will ultimately be passed on to customers through loan rates and other means," and added, "Allowing customers to choose between requesting an external appraisal firm or an in-house appraisal based on their preference seems more reasonable."

Banks intensify clash with appraisers over illegal in-house collateral valuations in Korea

Banks intensify clash with appraisers over illegal in-house collateral valuations in Korea Banks and appraisers clash over legality of in-house collateral valuations as industry tensions rise

biz.chosun.com

i love it...

 

[Fernando]

I hope USPAP sees this and put a stop with our Non appraiser collateral valuations.

 

[sputnam]

I hope USPAP sees this and put a stop with our Non appraiser collateral valuations.

USPAP has no power or authority over non appraisers. Congress could stop it... but, my guess is they won't.

 

[djd09]

that is right...USPAP is useless

 

[George Hatch]

Our laws have requirements to isolate the appraisal from the loan originator including the in-house loan origination. It appears their banking laws isolate the appraiser from the institution itself. That's an interesting angle when it comes to the idea of holding the lenders accountable for the decisions they make WRT engagement and use of the appraisal.

I wonder if the Korean banking laws place those responsibilities on the lender? and if so, how do you hold a lender responsible for their use of an appraisal when they didn't have any discretion as to which appraisers they did business with?

Mortgage lending aside, is it unethical for the govt to employ it's own appraisers and assessors? Is it unethical for an insurer to employ their own appraisers? Under what line of rationale do we get to the point where we can consider fee appraisal to be the only legitimate form of employment or engagement of appraisers?

 

[Surf Cat]

On September 29, the Korea Association of Property Appraisers (KAPA) staged a public protest outside KB Kookmin Bank’s headquarters, condemning the bank’s in-house collateral valuations as illegal under Korea’s Appraisal Act.

만세! Korea.....you're not a bunch of pu*sies like American Uber Eats appraisers bending over and grabbing their ankles.

 

[George Hatch]

So there was a protest. I wonder what came of it?