The mortgage banking lobby campaigned to change the rules. Where once FHA appraisers were picked from a roster, the rules were changed permitting the mortgage broker to pick the appraiser. How many stories have been told by appraisers of being threatened with their livelihood by mortgage brokers who informed them they either appraise the house at or over the selling price, or they would be replaced by another appraiser more willing to cooperate? The article below is only one business in one state, it happened on a immense scale all over the country:
"The two appraisers have settled the mortgage fraud claims via consent orders approved by U.S. District Judge P. Kevin Castel. Under these consent orders, the two appraisers will pay a total of $100,000 in penalties and damages to the United States, and will be barred from performing appraisals in sales involving federally-insured mortgage loans for several years."
"Manhattan U.S. Attorney Preet Bharara stated: "Appraisers serve as gate-keepers who ensure that mortgage loans are not based on inflated valuations. It is troubling when they disregard this important duty in order to ‘hit the numbers' and help facilitate unlawful real estate transactions. I applaud the efforts of our Civil Frauds Unit and HUD-OIG for uncovering this fraud and holding these appraisers accountable."
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