A public record may show to the computer that the home that sold only had say a 6,000 square foot lot. In short, AVM's are junk and companies telling the public they are as good as an appraisal should be sued in our opinion for misleading the public. It's the public who will begin to take huge loses. Appraisers in rural areas are reporting that they have been kept constantly busy doing foreclosure work. Some appraisers say there is so many foreclosures that they are 4-6 weeks behind getting to them.
Fast loans mean fast commissions to many lenders.
This Act was expected by many to go a long way towards protection of the consumer by mandating state control and licensing of its real estate appraisers. The states have been strangely silent when thousands of appraisers nationwide have over and over complained about bank coercion to make value. Nothing has been done until recently in this regard by the federal government or the states. Yet the once again the states and the federal government are silent when it comes to banks planning on letting highly inaccurate computer programs do real estate appraisals. Appraisers say that not only is the information these programs use highly incorrect, but these programs can be more easily manipulated to allow the banks to make value.