A more-thorough monitoring of the appraisal industry is needed to aid the ailing housing market, according to a study released by the U.S. Government Accountability Office.
The GAO states that poor appraisal practices are hurting home values, in turn keeping the real estate market from improving. To fix the issue, the agency states that the Appraisal Subcommittee should step up its efforts to closely monitor appraisers' work in evaluating properties.
"The current system is not working," said National Association of Home Builders chairman Bob Nielsen. "We must resolve a flawed appraisal process that produces inaccurate assessment of home values, because this fosters price instability, puts more families in danger of default or foreclosure, and undermines the housing and economic recovery."
Many provisions have been put in place by the Dodd-Frank Act to make the subcommittee more accountable in checking on the quality of appraisal practices. However, the GAO admits the subcommittee is short-staffed, thus making it more difficult for it to closely monitor the industry.
This report follows another released by the Appraisal Institute, which stated appraisers are not to blame for the drop in home values nationwide.