NAR Supports the Use of BPOs for Short Sales

Despite efforts by appraisers to discredit broker price opinions, there is no reason why the Treasury Department should ban the use of BPOs on short sales, according the National Association of Realtors. "There is no evidence that BPO exacerbates mortgage fraud or abuse," NAR says in a letter to Treasury secretary Timothy Geithner. The Realtors point out that BPOs are used to analyze mortgage loan portfolios for risk management and fraud detection. Home Affordable Modification Program servicers are gearing up to implement a new process to expedite short sales and Treasury has authorized the use of BPOs. Three appraisal groups recently warned Treasury that its decision to use BPOs could exacerbate mortgage fraud. "There is no evidence to support the assertion that appraisers are more or less likely to engage in mortgage fraud than real estate agents," NAR president Vicki Cox Golder said in the letter to Geithner. The Appraisal Institute, American Society of Appraisers and National Association of Independent Fee Appraisers claim that real estate agents and brokers generally are not independent or properly trained valuation specialists. "They have an inherent bias toward quick results which produces a fee for themselves," the appraisal groups said in a March 8 letter.