Are Over-worked Appraisers hindering legitimate transactions?

Appraisals have been the bane of my existance recently.

Since as of October 1st (in Ohio at least) appraisors have been required to be certified to perform their duties for FHA transactions, the ones who have remained standing are over-worked to the nth degree. Mistakes are being made that hurt home sellers - and home buyers.

This certification, according to a local Toledo OH appraisor, has eliminated appraisors who have been in business for 10, 15, even 25 years, if they do not possess a two year degree and do not pass a new Appraisal Certification test. Tests are fine and dandy to keep out the riff raff, but when they are designed to have only a 30% passing rate, according to my source, this also eliminates seasoned veterans who simply aren't good at "tests" after all these years.

Considering that FHA guidelines are less stringent than they were years ago, I see no reason to weed out so many in such a short period of time. The appraisors who REALLY need to be gone are the unethical ones who falsify reports - and there is no "test" to check for that (fraud), except periodic spot checks.

Check out the article below ...

According to my Ohio Association of Realtors newsletter:

... the House Committee weighs scrapping HVCC

The appraisal system imposed by Fannie Mae and Freddie Mac last May is under attack by the House Financial Services Committee and could be on its way out.

The "Home Valuation Code of Conduct" could be terminated by the proposed Consumer Financial Protection Agency under a bipartisan amendment approved by the House committee.

The amendment would require the new agency's director to replace the code with a set of rules developed through regular administrative procedures and public comment periods used by all federal agencies. The valuation code was the product of a settlement among New York Attorney General Andrew Cuomo, Fannie Mae and Freddie Mac and the Federal Housing Finance Agency.

Critics say the code created more problems than it solved and has encouraged lenders to use inexperienced appraisers who don't know the areas where they are doing the work, which is resulting in lowball valuations as well as higher fees.

The legislation under which this code would be scrapped is likely to pass the full House, but may have a tough road in the Senate.

Source: The Washington Post Writers Group