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The National Community Reinvestment Coalition
(NCRC) established The Center for Responsible Appraisals and
Valuations (CRAV) after receiving a number of complaints from
borrowers about overvalued appraisals.
For over a decade the residential real estate market has
been at the mercy of improper and unlawful appraisal and valuation
practices that have resulted in substantial over valuation
of the collateral underlying trillions of dollars of housing
loans. Despite the existence of Federal Laws (FIRREA) enacted
to protect against such abuse the lending industry has, to
some extent, become systematically engineered for over valuation.
Consumers have significantly overpaid for housing and all
attendant closing costs and interest. The financial integrity
of the system has been compromised.
Honest appraisers have had their businesses damaged or destroyed.
Certain lenders and the entire secondary mortgage market have
been defrauded out of billions of dollars. The NCRC, one of
the nation's leading consumer groups in the housing marketplace,
has created The Center For Responsible Appraisals and Valuations
to deal with these abuses.
NCRC quickly discovered that appraisers are the least to
blame for inflated appraisals. Lenders, mortgage brokers,
real estate agents and title companies have been pressuring
appraisers to inflate home values. Appraisers often have risked
losing future business when they have not "hit"
the price.
NCRC founded The Center to stop this practice. Representing
borrowers, appraisers and responsible financial service providers,
The Center's mission is:
- To encourage mortgage finance professionals to sign our
official code of conduct pledging to ensure fair and accurate
appraisals for borrowers;
- To inform the public about those who have taken the code
of conduct so borrowers can make more informed choices about
mortgage finance professionals;
- To mediate differences between professionals about valuations,
as well as file complaints on behalf of appraisers when
they report pressure by lenders, brokers and others to inflate
values or misrepresent a home's worth in some way.
- To advocate for effective public policy on a Federal and
State Level.
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