NEW YORK (Dow Jones)--In an effort to keep their business thriving as the mortgage sector adjusts to the reality of waning refinancing and lower new purchase volumes, some mortgage lenders appear to be turning up the heat on home appraisers to overstate the values of properties they are appraising. At least, that's what some appraisers are saying, according to a recent study from October Research Corporation, a provider of national news and information to the real estate services industry.
October Research's report surveyed 500 fee appraisers from across the country, who have at least five years of experience in the residential real estate appraisal business? The survey was conducted by telephone in the second half of 2003. Preliminary findings were published in December, while the final report will be published this week.
October Research says the survey was developed as a response to requests from the appraisal industry for impartial, current research on its business practices. Of the appraisers surveyed, 55% said they have felt pressure to inflate the values of properties, with 25% of those respondents saying it happens nearly half the time.
"Uncomfortable is a very powerful word but it speaks volumes to how appraisal professionals feel when they are asked to exaggerate the value or conditions of a property," stated Joe Casa Fonder and Publisher of the company.
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