Think lender pressure on appraisers is a distant memory? Think again. Here is some commentary on a new report that indicates appraisal fraud is up 50% over the past year. It is laid out in Kenneth Harney’s excellent column in the Washington Post.
“Despite 2009 restrictions, mortgage and appraisal fraud spiked“
I also provide commentary on a recent episode with a bank client we now refuse to work with who pressured our firm to raise the appraised value of a property or they would not pay us for services already rendered.
In fact, they didn’t really understand what they were saying.
My suggestion is to not let this slide. You didn’t mention the bank regulator, but my guess is one of the agency representatives on the Appraisal Subcommittee might be interested.
I have had conversations with Steve Fritts (FDIC), Ginny Gibbs (FED), and Bob Parson (OCC). All are straight shooters, know about pressure on appraisers, and should be able to point you in the right direction.
Is it good if a vacuum really sucks?