News Flash Fannie Mae says appraisers are not to be induced or threatened to inflate appraisals by banks or lenders. Shocker! Never thought that Fannie Mae had to come out and actually tell banks and lenders that "You really shouldn't threaten appraisers with pulling business if they give you a low appraisal."
I must be the stupidest person alive to think that the job of an appraiser is to give a realistic view of what the house is worth to "Protect" the bank from potential losses. This is called sarcasm.
We are in trouble because of the simple fact that our entire industry from Lenders to Real Estate Agents to Appraisers are paid on commission and are not paid on the long term benefit/profitability of the work performed. ENRON was a textbook example of paycheck first profitability second ... and look were they have wound up.
Comments(2)