States Create Laws to Prevent Pressuring Real Estate Appraisal Firms

August 13, 2009

During the heights of the last real estate boom, appraisal firms were often pressured by small mortgage companies to line up a property’s value with it listing price- to ensure a sale. However, now it is believed that this had something to do with the recent crash of the real estate market. Instead of providing a fair and accurate report on the price of a home or property, they would often inflate or deflate the price to please the mortgage lenders.

Now, many states- in order to prevent future crashes- are putting laws into place that prevent “blacklisting, boycotting, intimidating, coercion, and any other means that impairs or may impair the independent judgment of the appraiser.” The laws are toughening, so that appraisers do not feel pressures from the lending companies and will properly perform their jobs.

These laws are being passed to prevent any future crashes or problems.