Appraiser Resources
The Appraisal Institute - Seattle
Chapter
Lender Pressure
Lenders are bringing intolerable levels of pressure against residential appraisers. Pressure can be as subtle as a polite request for a value to outright threats against the appraiser.
Examples of pressure and intimidation:
withholding payment if an appraiser fails to appraise a property at a specific value;
withholding of business if we, in advance, refuse to guarantee a predetermined value;
withholding of payment and/or business if we refuse to ignore deficiencies in a property;
forcing an appraiser to alter the description of a property so that a property will appear to be in "Average" condition or "typical" of the area, when in actuality, the property is in Fair or Poor condition;
black listing honest appraisers in order to use less enlightened appraisers;
forcing appraisers to make statements guaranteeing that a structure or improvement conforms to local building codes when appraiser are not qualified to make such statements.
Under the current system, lenders, individuals working for lenders, and other real estate professionals do not suffer negative consequences if and when they apply pressure to appraisers.
The practice of pressuring appraiser's for a predetermined value or description of a property is illegal under State and Federal laws!
This section of the Appraisal Institute - Seattle Chapter's Internet site, is an attempt to educate lenders and provide tools that will help appraisers.