Mystery man3
Junior Member
- Joined
- Jul 26, 2005
- Professional Status
- Certified Residential Appraiser
A Government Appraiser Selection Agency is necessary
What we need is a government agency like what the Veterans Affairs Department has for selecting appraisers. If appraisers are not selected at random there will always be some influence being placed on the appraiser. The government agency should determine the fixed fee and pick the appraiser.
AMC's won't work because they can be influenced by lender pressure just as easy as an appraiser. Even if the AMC's are not allowed to discuss value with an appraiser what stops them from picking the appraiser that "seems" to bring the appraisal at a higher value in order to please their lender client.
Some may call a government selection agency socialism but just to inform you the U.S. Government is already heavily involved the mortgage industry. The government buys bad loans in order to insure the survival of the big banks so the economy does not collapse. Since the banks know that they are "too big to fail" and the government will bail them out they will continue to want risky loans to maximize profits. The government intervention rewards risky loans. Which is why the free market just doesn't work for appraiser selection.
Jeffrey Baird B.A. Economics
What we need is a government agency like what the Veterans Affairs Department has for selecting appraisers. If appraisers are not selected at random there will always be some influence being placed on the appraiser. The government agency should determine the fixed fee and pick the appraiser.
AMC's won't work because they can be influenced by lender pressure just as easy as an appraiser. Even if the AMC's are not allowed to discuss value with an appraiser what stops them from picking the appraiser that "seems" to bring the appraisal at a higher value in order to please their lender client.
Some may call a government selection agency socialism but just to inform you the U.S. Government is already heavily involved the mortgage industry. The government buys bad loans in order to insure the survival of the big banks so the economy does not collapse. Since the banks know that they are "too big to fail" and the government will bail them out they will continue to want risky loans to maximize profits. The government intervention rewards risky loans. Which is why the free market just doesn't work for appraiser selection.
Jeffrey Baird B.A. Economics
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