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Home Appraisal Overhaul Draws Fire

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NC Appraising

Elite Member
Joined
Apr 28, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
For the full story: http://www.charlotte.com/business/story/632984.html

"The N.C. Appraisal Board, which oversees the state's appraisers, said in its comments that the agreement could undermine legislative efforts in Congress and divert attention from problems with poor lending practices. “Appraisers are not responsible for this crisis and should not be the ones to pay for it,” board chairman Henry Faircloth and executive director Philip Humphries wrote.

The appraisal board is concerned because the agreement allows lenders to use so-called “Broker Price Opinions.” These are valuations conducted by real estate agents. Under N.C. law, real estate agents can value property only to assist the buyer or seller of a property. Only appraisers can determine property values for lending decisions, according to the letter.

The board also is worried the code will cause a “dramatic rise” in appraisal management companies, or AMCs. That's because the agreement requires appraisals to be ordered by the lender or a third party authorized by the lender"

If interested, a full response from the North Carolina Appraisal Board
 
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