From Ken Harney’s weekly real-estate column:
Well, you might ask: Since appraisers in the past have often complained about pressure from loan brokers and realty agents to “hit the number” — that is, turn in valuations high enough to allow transactions to go to closing — aren’t they happy about the new prohibitions?
Many local appraisers have built up long-standing, legitimate relationships with brokers, small lenders and Realtors as sources of assignments. Under Fannie’s and Freddie’s new rules , they fear, the mortgage business will shift away from local brokers to large national lenders, who’ll use big “appraisal management companies” to handle home valuations.
Those management companies, according to a joint statement issued by the four largest appraiser trade groups, are not regulated at the state or federal levels, and “place appraisal quality last,” while refusing to compensate experienced appraisers fairly.
It appears appraisers complaints about the inadequacy of Appraisal Management Companies is reaching the public.