Realtors Appraisal Complaints Center in on HVCC

Real estate agents are complaining to the National Association of Realtors that low-ball appraisals are upsetting sales transactions, blaming the recent implementation of a new appraisal code by Fannie Mae and Freddie Mac. "We are getting bombarded by members across the country who say that sales are falling apart," NAR chief economist Lawrence Yun told reporters. Realtors are blaming appraisals coming in at the last minute with "unrealistically low values." Mr. Yun said . NAR is investigating the complaints. The GSE appraisal code that went into effect in May — the Home Valuation Code of Conduct — encourages the use of appraisal management firms that do not always use local appraisers. Real agents are complaining that appraisals are being conducted by non-local appraisers who are using non-comparable properties and relying on computer models, Mr. Yun said. Mortgage brokers also are complaining that appraisals are taking longer and causing some transactions to fall through. Appraisal Institute government affairs director Bill Garber said there is a lot of frustration about market conditions and Realtors and loan brokers are unfairly blaming appraisers.