MBA Appraisal Report Presaged Cuomo-GSE Pact

American Banker (03/28/08) P. 17; Terris, Harry
A task force established by the Mortgage Bankers Association presented the trade group with a list of suggestions in January that aim to protect appraisers from pressure by lenders, mortgage brokers and other real estate professionals to inflate home values. Many of the recommendations are similar to those set forth in a recent deal between New York Attorney General Andrew Cuomo and the government-sponsored enterprises Fannie Mae and Freddie Mac. According to attorney Rachel Dollar, CMB, the task force's chair, "Some of the issues in the appraisal industry are so apparent that almost anybody coming in to provide a solution would come up with them, especially the issue with separating the appraisal process from the origination process." Dollar clarifies that the recommendations have not been sanctioned by MBA but simply are part of "a report to the MBA by a task force." The report acknowledges that appraisers often are pressured to meet a certain valuation but stresses that they ultimately are responsible for the valuations they make. Among other actions, the task force suggested that more educational opportunities be made to appraisers, that lenders be given a list of reliable and ethical appraisers, that valuations be reviewed, that the reports be stored in a national database and that a self-regulatory organization be established.