After the mortgage and financial crisis of 2007-2009, which statement is NOT commonly stated about appraisers and their involvement in the crisis?

• A. Appraisers faced increased scrutiny and regulatory attention.
• B. Appraisers sometimes faced allegations of inflated values due to lender pressure.
• C. Appraisers profited the most from the lending boom by making up to $3,000 for every residential appraisal.
• D. Appraisers stopped valuing in risky markets.

Answer: (C)

Appraisal independence and the influence of lender pressure on valuations became a central issue after the crisis. It’s commonly noted that appraisers faced tighter regulatory scrutiny as authorities worked to ensure valuations were objective and not swayed by lenders’ desires to close loans. There were well-documented concerns and allegations that some appraisers felt pressure to inflate values to meet loan conditions, highlighting the risk of biased appraisals when independence isn’t preserved. The idea that appraisers profited the most by making up to $3,000 for every residential appraisal isn’t a credible or widely supported portrayal; typical appraisal fees are variable and generally modest, and the emphasis in reforms focused on preventing improper influences rather than portraying appraisers as the main profiteers. Some discussions also reflect that appraisers could avoid valuing in particularly risky markets as a response to risk or reputational concerns, reinforcing the importance of reliable valuations in unstable conditions.