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Poor lenders now want to blame the appraisers. Law suits on

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Jan 15, 2002
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Certified Residential Appraiser
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North Carolina
Appraisers in Spotlight as Home Prices Rise

(December 13) -- Home appraisers are drawing fire from consumer advocates and mortgage companies who contend that inflated valuations are contributing to a higher incidence of mortgage fraud, with homebuyers and banks emerging as the biggest victims.

Federal prosecutors are targeting these inflated-appraisal schemes as part of an effort to halt such fraud, and Capitol Hill lawmakers are considering regulation of appraisers for the first time since the savings-and-loan crisis of the 1980s. At the same time, homebuyers are taking appraisers to court in greater numbers over fraudulent valuations.

Against this backdrop, mortgages and refinancings are expected to increase 19 percent this year to an all-time high of $2.4 trillion. As a result, analysts are concerned that the poor U.S. economy will cause home prices to plunge soon. If this happens, the country's 40,000 or so residential appraisers will be subjected to the same level of scorn now being directed at Wall Street securities analysts who touted overpriced stocks before the dot-com shakeout occurred.

[Editors note. Appraisal leaders in the National Association of REALTORS and other organizations have been working for the past several years to heighten awareness of appraisal valuation concerns and valuation pressures on appraisers from transaction parties.]

Source: Wall Street Journal (12/13/02); Hechinger, John
 

Austin

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Jan 16, 2002
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Certified General Appraiser
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Bob: I believe that you are in Charlotte, NC. There use to be a poster on this forum named Andrew from Charlotte. We use to butt heads over time adjustments. I contended that it was not possible to support a time adjustment within a reasonable exposure period. Andrew and others on the west coast said I was out to lunch and that prices were going up so fast that you could support a weekly price increase. I told them it was hogwash and that it did not make economic sense because one isolated area cannot get that far out of balance with the general regional market because if it did, sooner or later the bottom would fall out. Whatever happened to Andrew and the Charlotte market?
 

USPAP Compliant

Thread Starter
Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
He is a lurker now. New girlfriend....no time anymore!


I know him well, he lives about 10 minutes away from me.
 
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