My New Blog

   So what you think you know or can control about the appraisal process is slowly slipping away.  As the masses move away from the Real Estate Appraisal Profession and as the smoke clears on a market the was skyrocketed into space, only to began the fall when it hit the outer ozone we began to note all factors that created the rise and fall of the Real Estate market. 

   It is my own personal opinion that as the market began an upward shift, careful examination of market areas, as well as a number of untrained professionals fueled the markets beginnings of an overinflated market.  Market areas long held as 'unpopular' or 'historically' lower in values, were all considered equal as buyers were plently.  And with work coming from every avenue of the nation, appraisers felt no need to stand as professionals.  To stand as the reason we are really here.  The last 'unbiased' opinion, that is to uphold public trust.  But with heat on all fronts, and no one else to account for wrong doing, we stood alone.  An appraiser who couldn't 'make the deal work' would face no work.  Forget the fact that if it is overvalued, one may stand to face missing future payments, rising interest rates, and possibly foreclosure.  It's amazing how many Real Estate professionals, who have been in the market for long periods of time, do not see this coming.  Or perhaps is the legal enforcement of law, which does not occur, that aided in appraisers just not caring.

    If you have not yet heard, under high scrutiny amongst high quality appraisers, plus a move within the appraisal industry to increase quality standards and educational background to become appraisers has led to the following:  On 05/31/2007, the California State Senate passed SB 223 (Senate Bill = SB) which states:

This bill prohibits any person with an interest 
          in a real estate transaction involving an appraisal from 
          improperly influencing or attempting to improperly 
          influence a real estate appraisal sought in connection with 
          a mortgage loan, as specified and provides that a violation 
          by an individual licensed by the state is deemed to be a 
          violation of state licensing law.  In addition, this bill 
          also expands the prohibition for licensed appraisers from 
          engaging in any appraisal activity where their compensation 
          is affected by that appraisal.

While this should be taken on in a national sense, it is a start for us appraisers who strive for quality.  Believe me, we do not like to loose business, but more importantly, historically speaking, in an incident involving fraud, or other shady deals, the one who gets the worst punishment is the appraiser. 

Any thoughts?  Remarks?