Undue Influence

No appraiser has ever inflated a value on his or her own. Those with a commission at stake in the mortgage process, and even buyers themselves, are the ones who want the appraisal to "come in" at the highest value possible. That way buyers can qualify for creative low downpayment or interest-only mortgage programs, or get into a bigger house. The pressure from all sides to make a deal work can be intense.

Even though lower income home owners are disproportionately affected, this pressure to overstate appraisal values is not limited to certain markets, certain lenders or to a certain type of buyer. Overwhelming numbers of appraisers say they’ve been pressured to lie on their appraisal report in the last year alone. The law should ensure appraisers' independence from commissioned participants the mortgage transaction.

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