False Advertising

Federal law distinguishes between an "appraisal" – which is performed by a qualified, professional appraiser and has to conform to strict requirements – and an "evaluation" of collateral. Yet automated collateral engines routinely advertise themselves as "electronic appraisals" or substitutes for appraisers' work. False advertising about the nature of a non-appraisal product should be prohibited.

Home buyers pay for appraisal reports. Too often, though, lenders charge borrowers for a full appraisal and only rely on cheap automated databases to evaluate collateral. Home buyers who pay full price should get full value – a full appraisal.

Read about Appraisal 'Alternatives'