Real estate appraisers are facing scrutiny over some of their home valuations. The complaints from lenders stem back to a time when real estate was booming.
As homes make their way through the foreclosure process the Georgia Real Estate Commission is seeing a rise in complaints by lenders. Mortgage companies are questioning high values placed on homes five to ten years ago because they are now worth much less. The lower value reduces the amount banks get when a home sells.
Georgia Real Estate Commissioner Bill Rogers says if investigators find appraisers didn’t meet state and federal requirements on loan paperwork they can receive a citation or lose their license.
“If they don’t jump through those hoops and look at the criteria that they should look at when they’re making an appraisal, if it’s apparent that they haven’t done that then we’ll make a case against them.”
Rogers says the declining market is increasing the number of cases. Georgia ranks 4th in foreclosure filings.