Appraisal rules backfire in down market: Appraisal management companies blamed for undervaluation

Appraisal rules backfire in down market: Appraisal management companies blamed for undervaluation

Enacting rules to curb abuses arising during a housing bubble, which don't take effect until the succeeding financial crisis, can easily do more harm than good. This is the case with new rules requiring that property appraisals be insulated from pressures exerted by any of the parties with a financial interest in an appraised value: primarily lenders, mortgage brokers and Realtors.

When the values come down to reality levels, so will assessed tax and as the bubble bursting effectband unemployment snowballs, so will tax revenues.

How will the Government pay for it's blank check with all those zeros?

Well, we can always blame the appraisal managment companies on the way down....