Inflation pressure
 

A new survey from October Research Corp. reveals that 90 percent of real estate appraisers were pressured by mortgage brokers, realty agents, lenders and/or consumers to inflate property values, up from 55 percent in 2003. Also, three-quarters of appraisers said there were “negative ramifications” for refusing to elevate property values, with 68 percent saying they lost their mortgage broker or lender client and 45 percent saying they were not paid. The most common source of pressure came from mortgage brokers – cited by 71 percent of appraisers – followed by real estate associates at 56 percent, consumers (usually home sellers) at 35 percent, mortgage lenders at 33 percent, and appraisal management companies at 25 percent. 

Source: Baltimore Sun (02/02/07) Harney, Ken

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