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CALIFORNIA

Appraiser Pressure Bill Signed

Governor Arnold Schwarzenegger has signed into law a Senate bill, which penalizes those who allegedly put pressure on appraisers to hit a predetermined value for a property, such as the mortgage broker or homeowner to make a sale go through.

The American Society of Appraisers said it believes that lender pressure is an ongoing problem for appraisers and is committed to supporting legislation to reform fraudulent practices in the mortgage lending industry.

The new law makes it a crime in California for any interested party in a real estate deal to pressure an appraiser to appraise a property for a predetermined amount.

"The new law in California is a good first step," said Abel Morales, an accredited senior appraiser and member of the American Society of Appraisers. "It recognizes that appraisers are often pressured from a variety of interested parties in a real estate deal and they need to have some form of protection from that."

Mr. Morales added, "The system is so flawed that many appraisers risk being blacklisted, not paid for their work, or not being hired again if their appraisals are lower than the desired number."

According to the organization, the reason it so important to have an unbiased appraisal is because the appraiser is the only objective third party involved...

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