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Daily Real Estate News | January 19, 2006
A La Mode Founder Backs Nonprofit Appraisal Group
A la mode founder and Chairman Dave Biggers has jumpstarted the Appraisal Advocacy Coalition, a nonprofit group that supports the independence of appraisers and calls for full and accurate valuations.
The organization is separate from a la mode, a real estate technology company, though Biggers donated both money and staff toward its launch.
"Appraisers are the auditors of the mortgage transaction, but they can only do the kind of good, valuable work auditors do in other business contexts if they're perceived as and treated like auditors," says a la mode spokesperson Ben Harris.
Former HUD Secretary Andrew Cuomo supports the coalition, noting that joining forces makes it easier for appraisers to fight the pressure to inflate property valuations.
A la mode reports that residents of low- to moderate-income Census tracts account for 83 percent of mortgage scams that involve inflated appraisals. Additionally, the National Community Reinvestment Coalition has found that more than 50 percent of the victims of such mortgage schemes pay 20 percent to 50 percent more per month on their home loans than they would have with an accurate valuation.
Source: Inman News Features (01/18/06)
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