I would be surprised if the GSEs stopped at merely examining the appraisals in those loan files. Based on my experience, the loan files that contain blatant overvaluations will also include other substantial problems. After all, no appraiser – even our donkeys – will volunteer to overvalue a property on their own accord. At most, an appraiser is only an enabler. They only do bad things at the behest of their clients; and a loan originator that will solicit a blatant overvaluation from an appraiser will also commit other serious violations with respect to income and employment verifications.

Going forward, I think a lot of people are about to find out that the half-life on information in the information age is a lot longer than the length of time it takes to book a loan.

Also, lenders are not using past excuses to review appraisals; they’re just doing what the should have been doing in the first place. Many lenders that don’t deal with GSEs actually review 100% of the appraisal reports that they received; it’s simply common practice.

What lenders are doing is cracking down on incompetence. If a questionable appraisal report is sent to a lender via a mortgage broker, make sure you’re strapped into your seat. They’re going to start looking at everyone. They will also keep a watchful on both the appraiser and the mortgage broker…so I’ve been told by big-money investors.