GAO Critical of Housing Appraisal Monitoring

Washington, DC, Jan. 25, 2012 -- The Government Accountability Office earlier this month reported that the Appraisal Subcommittee, which oversees the appraiser regulatory programs established by the states, needs to improve its monitoring procedures.

“These findings underscore the need to establish an effective oversight system to ensure that appraisals accurately reflect true market values and don’t harm aspiring home buyers or builders,” said National Association of Home Builders Chairman Bob Nielsen.

A recent NAHB survey shows that one out three builders have lost signed sales contracts because of flawed appraisals and a fall survey conducted by the National Association of Realtors shows that 18 percent of Realtors reported a recent contract cancellation or delay as a result of a low appraisal.