Appraisers Pressured to Inflate Values Based on Race

Appraisers Pressured to Inflate Values Based on Race. The real estate appraisal industry has long been subject to pressure from various sources, such as lenders, borrowers, and agents. In the past, this pressure often came in the form of withholding business if appraisers refused to inflate values, or ignore property deficiencies. Nowadays, it appears that government efforts, aimed at curbing discrimination, are actually leading to increased pressure on appraisers to inflate values.

This is a troubling development for honest appraisers who may be feeling more pressured than ever before by those looking for higher numbers than what an accurate appraisal would yield. Unfortunately, some have taken this opportunity to spread lies about systemically racist and biased practices among appraisers, in order make appraisers feel afraid of speaking out against these pressures – something which ultimately only further denigrates the profession through slander and defamation.

It’s important that we recognize these tactics for what they are: attempts by certain parties with vested interests in inflated valuations seeking compliance from everyone involved regardless of accuracy or integrity considerations. Real estate appraisers should not allow themselves be bullied into making decisions based on fear rather than facts; instead they must stand firm against any attempt at coercion, so as to protect their reputations while ensuring fair and accurate appraisals across all properties regardless of race or other factors.

The Home Appraisal Numbers Game – By Sharyl Attkisson – March 14, 2008

Home appraisers Pam Crowley and Joyce Potts knew the roof was caving in on the housing industry…

They noticed their profession being turned on its head. Instead of letting them do their job and figure what a home was worth… bankers and realtors started telling them what dollar number to hit.

“The appraiser is not to accept any orders where it’s pre-determined what the value should be,” said Crowley, a Florida certified real estate appraiser.

Most everyone wants a high appraisal: buyers pay less cash down; banks make more money on bigger sales. It’s the appraiser who’s supposed to be fiercely independent to keep things honest…

So many appraisers have felt pressured to give inflated home values, 10,000 of them signed a petition hoping to get federal regulators to act…

Image credit flickr - Dr Garageland


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12 Responses

  1. Baggins Baggins says:
    TAF at it again, via the AVM regulation letter writing period. 08/21/2023 comment submission deadline.
    Search this term for more;, “pamela crowley” / Also the “amc”, or “appraisal management company” on that ‘site specific search’. Will bring a lot of good perspective. Prior to the whole sale sell out of the appraisal industry, appraisers stood up and cared. Appraisers whom worked with the amc companies, did so reluctantly and with regret. Most of those appraisers whom cared about consumers first and foremost are gone now.

    Quote from article: ‘The case revolves around Crowley’s disclosure about eAppraiseIt’s former practice — the company says it stopped doing it in April — of opening electronic reports compiled by appraisers for lenders. /
    Crowley and others contend that, when those secure files are open, there is an opportunity to manipulate data — typically to the benefit of the lender — and for a property owner’s private information to be released to unauthorized parties.’ End quote.

    Think of the gravity of institutionalizing the ability to manipulate reports, requiring everything be sent in xml unlocked format, then the data being broadly disseminated, being touched and handled by a multitude of unnecessary third fourth and fifth or more party companies. The best of us used to actually care about ‘owners private information’ being released to ‘unauthorized parties’.

  2. Avatar Eric Kennedy says:

    Hail to the Pam 😉 and Joyce and entire IVPI Team. and with a finger to Cuomo and Dudd-Fwank. Thanks for runinn my life.

    • Baggins Baggins says:

      Although we did not understand this at the time, appears obvious now that mandating inclusion of appraisal management companies was the initial move to socialize mortgage lending systems. Whenever anyone mentions Crowley I’m pulling out old amc meme’s from the crypt.

      • Avatar Eric Kennedy says:

        Crowley 😉

        • Baggins Baggins says:

          Do you want to play a game? Just kidding.

          I liked this article because this provides reference to how egregious the appraisal modernization schemes have become, just another iteration of external pressure trying to force appraisers to report something other than true market value. And of course as is entirely predictable and expected, the amc’s are front and center with the applied pressure.

          • Avatar Eric Kennedy says:

            This proposal has merit, but it’s complicated. I would federally mandate that all states maintain a rotation panel for frt’s similar to the VA with allowances for complex to go to bids. It’s a simple solution and solves a lot of problems and brings equity back to the Appraiser… not management

            • Baggins Baggins says:

              Obviously needs a rewrite to catch up to the modern day events, the end was problem resolution specific for that specific point in time.

              Yeah, round robin rotational. This was how nearly the entire industry worked pre amc management debacle.

              1. Appraisers applied to be on lenders panel. If they was need they were added, if not, set on a waiting list.

              2. Lenders distributed fairly among all panel appraisers. If you were good enough to be on the lenders panel, you were guaranteed a fair share of work. The sooner you got an order turned in, the faster you got back in line for the next one. There was no discriminatory effect like there is now, 24 hour turn time expectations which elderly and disabled appraisers are unable to accommodate. There was flexibility for life, and sometimes appraisers worked harder for more volume, other times they had that allowance to run out to due dates and there was no performance grading or cart and carrot routine which penalized appraisers for taking time to form reliable reports.

              3. Lenders every few years would survey appraisers for their fees, and the fees indicated by the majority of appraisers, became the standard compensation all panel appraisers enjoyed. Lenders surveyed with true free market principals in an honest manner, to identify the most common fees all appraisers would accept. Appraisers whom entered lower figures got a raise, and appraisers whom entered higher figures had to take it or leave it. This was the ‘peer standard’ for appraisal fees.

              4. Appraisal management companies came in requesting fee surveys which appraisers were familiar with filling out. And like the dirty slimy predatory bastards whom were attracted to free ride amc management companies, immediately assigned the lions share of all orders to the absolutely lowest priced appraiser, cut every other appraiser out except for challenging work, continued to charge consumers full fees, and pocketed the difference. Engaging in concerted restraint of trade and racketeering for the past decade and a half if not more. The volume discount theory no longer applied, because although appraisers discounted service fees for increased volume, consumers never saved a single dime anymore from the appraisers reduced fees. Therefore; appraisers whom discounted for amc’s were enticed to bribe the amc company for more work, via providing a lower fee, then accepting a thing of value in the form of unfair work load distribution to be the preferred selectee in violation of the management rule in the appraisers uniform standards of professional practice ethics book. The amc industry simply overlooked federal registry guidance that appraisers are supposed to be selected on merit and qualification, not fee. Additionally this allowed a new type and new level of pressure applied to appraisers never before seen, pressure to produce reports faster cheaper and quicker. Appraisers whom failed to comply were graded by the amc’s as being poor performers and further de prioritized from fair work load distribution. Prior to these events, lenders would pay rush fees to appraisers for anything under a week. Standard turn times were 4-6 weeks prior to the amc industry. Fees to this day have still not recovered to pre amc levels for most appraisers. Amc’s utilized appraisers submitted lender references to poach 85% of all lending work in this country, falsely selling fear to lenders that utilizing an amc was the only avenue of updated regulatory compliance. The amc’s then to this day continue to secretly trade do not use lists and black lists which due to consolidation and compartmentalization, appraisers are no longer aware of. Instead of mutual accountability; a licensed appraiser dealing with a licensed mortgage banker, instead licensed appraiser held under thumb subject to the whims of unregulated persons without individual licensing, at appraisal management companies. Predatory lending never went away, only shifted it’s methods to fee raking and pilfering the appraisal community as retribution for appraisers having played a key role in redirecting accountability for the 2008 meltdown back to predatory lenders. Appraiser Independence! Who wants to help the poor?

  3. Baggins Baggins says:

    Posted way back archives of pams site on another thread.
    ‘Skippy’ won out after all. Pathetic every last one of them.

    Find a new career before I ever work with appraisal management companies again. I’m not into working with rings of criminal fraudsters.

  4. Avatar JohnnyQ says:

    Wait, weren’t we at this same junction prior to 2008?

  5. Avatar Antney says:

    I do not care what color, gender or whatever a person is. I will not inflate values period!


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Appraisers Pressured to Inflate Values Based on Race

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