NYT: "In Appraisal Shift, Lenders Gain Power and Critics"

An article in today's New York Times details the origin of the HVCC and some of the problems that both lenders and appraisers are complaining about. I found it interesting that a group of appraisers created a petition before the credit crisis warning that prices were getting out of control.

Instead of developing relationships with brokers and agents, the Hartliebs must wait for a lender or appraisal management company to call. A year ago, they would make $350 for an appraisal that would take about five hours. Now the management companies offer as little as half that. The couple has laid off four appraisers who used to work for them.

Over all, it seems little has changed: lenders are still pressuring appraisers to value homes to match their needs, and honest appraisers are still attempting to fill their role in keeping the real estate valuation honest. The AMCs playing as middle man are just complicating the process more than necessary.