Did you receive an honest appraisal, that represented the real market value of your home? If your lender used an Appraisal Management Company, possibly not. A recent lawsuit contains disclosures of the inner workings of how large AMC's are used by lenders to hide pressuring appraisers to "hit the number." Their favorite tactics:
Having a list of "number hitters" and give them the majority of the orders.
Pressure appraisers who come in low.
Threaten not to pay appraisers who come in low, and to cut them off from future work.
This behavior is illegal, and subject to a $10,000 fine in the first instance, and $20,000 in every subsequent instance.
I would urge you the reader to read this article AND the appraisers' comments below to see how widespread this behavior is. Also, insist on your lender
1) not use an AMC (they are not, nor have they ever been required),
2) provide ALL communication regarding your file be forwarded to you.
I am proud to say that I know for a fact that I have lost work for being honest, and providing credible reports that didn't "hit the number." I have always welcomed reconsiderations of value, and requests to review my analysis for potential errors, omissions, or other deficiencies. These are all fine and should be part of the process - however, Blacklisting appraisers for good reports that cost the parties "the deal" is illegal, and I'm glad to see this going to court.
