New Appraisal Regulations

In the Real Estate industry the new regulations on appraisers has been causing quite a stir. The new rules- called the Home Valuation Code of Conduct- were drafted by New York Attorney General Andrew Cuomo and are meant to separate lenders and appraisers. Evidently people think that lenders have been pushing appraisers to value homes much higher than the agreed sale price, which caused the mortgage meltdown. As I understand it, however, the majority of lenders did not push appraisers, some independently may have, and some appraisers may have been pushing prices up too, there are bad apples in every barrel. But these new regulations go too far, now appraisers can't be selected based on experience or area of expertise. Some have focused on specific neighborhoods, or types of property. Now most appraisers will have to contract with an "appraisal management company" which will take a percentage of their fee, and randomly assign them to appraisals as they are requested. While some regulation is needed, and appraisers have and continue to need licensing and continuing eduction, like all professions, New York does not need to press their own standards on the nation, or to over regulate real estate, which is trying to rebound and recover along with the rest of the economy.