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Is it common? Our lender has 20% of the interests of the appraisal company they ordered.

I am worried about their business relationship which might affect my appraisal.
Is it common?
  • April 06 2012 - US
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Answers (2)

Best Answer

There are mortgage companies or banks that have ownership in appraisal companies.  Personally I think that is a conflict but companies do have to disclose their affliliated business arrangements such as this.  Ask about their policies or steps they take to have an unbiased appraisal.
  • April 06 2012
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While on the surface this would appear to be a problem, the question is what is your role in the transaction. If you are purchasing a home, then you would have some concern over a possibly inflated appraised value.  But if you are refinancing, a higher appraisal can help you.  Bottom line, in the current environment any credible lender will be very careful to avoid trying to influence an appraisal.  The penalties can be very harsh.
  • April 06 2012
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