NPR did a segment on realtors' complaints that a new law governing appraisals is preventing them from completing sales. According to the report, many realtors are complaining that the law, which prevents realtors from directly contracting appraisers, are leading to less experienced appraisers being hired. This can create one real problem, delays in appraisals, which can slow or block sales. However, the piece also implies that the new system is leading to lower appraised prices and thereby preventing mortgages from being issued. This second point does not make sense. Inexperienced appraisers may give less accurate appraisals, but there is no reason to believe that they would produce biased appraisals. If the realtors are unhappy about the appraised prices, then it is simply because they are unhappy that market prices have declined or they were used to getting inflated appraisals from corrupt appraisers.
--Dean Baker