It is typically important that a well-educated and professional appraiser be involved and communicates his or her evaluations as this will be significant and meaningful to the client thus avoiding all misleading data engaged within the marketplace. This fall under the uniform standards of professional appraisal process that indicates the current rules of the appraisal profession (Fu et al. 2014). The significance of the role of the appraiser places legal obligations on those who operate in the same capacity. These rules engage explanatory comments and start with an ethics provision setting forth of the needs for integrity, independent judgment, and ethical operations. Moreover, the laws include a competency provision that puts an immediate role on the appraiser before acceptance to the task.
Among the several regulatory guidelines documented in the act is the modern game scheme for the appraisal procedures with the primary intention of ensuring that home appraisals are done accurately and realistically while avoiding untrustworthy brokers from pressuring appraisers. However, the long-term impact on the continually changing appraisal process has resulted into to several lenders outsourcing the whole process to the appraisal management organizations while others are hiring out-of-area appraisers and paying them at cut rates. These have in turn led to sloppily inaccurate appraisals carried out by appraisers who are unfamiliar with the local market (Fu et al. 2014). Before the Dodd-Frank Law, the appraisal process was the most currently regulated by the conditions and terms of the 2009 home valuation code of conduct that strategically needed that mortgage lenders apply a third party while acquiring an appraiser to carry out an appraisal.
Fu, Y., Xiong, H., Ge, Y., Yao, Z., Zheng, Y., & Zhou, Z. H. (2014, August). Exploiting geographic dependencies for real estate appraisal: a mutual perspective of ranking and clustering. In Proceedings of the 20th ACM SIGKDD international conference on Knowledge discovery and data mining (pp. 1047-1056). ACM.