Appraisers, like auditors, are supposed to follow a strict standard of professional behavior, said David Callahan, senior fellow at the public policy organization Demos and author of a recent report about appraisal fraud. "What is actually happening is lenders and brokers are telling them what value they want," he said. "If [appraisers] don't play ball, they don't get paid or don't get work again."
But, as the Appraisal Institute recently testified to Congress, appraisers are under increasing pressure from lenders, mortgage bankers and real estate agents to "hit their number" when appraising property.
