What is the purpose of the Appraiser Independence Requirements?

The purpose of the Appraiser Independence Requirements is fundamentally to protect against fraudulent home valuations. These requirements were established to maintain a clear separation between lenders and appraisers to ensure that appraisers can perform their duties without undue influence or pressure from third parties, particularly from those with a vested interest in the outcome of the appraisal process. By fostering an environment where appraisers can operate independently, the risk of manipulated or biased valuations is greatly reduced. This independence is crucial for preserving the integrity of the appraisal process and ensuring that property valuations reflect true market conditions, which ultimately protects consumers and maintains the stability of the housing market.

While other aspects, like streamlining processes or increasing speed, may be incidental benefits, they are not the primary motivations behind these requirements. Similarly, accurate tax assessments could benefit indirectly from unbiased appraisals, but the main focus of the Appraiser Independence Requirements is indeed centered on preventing fraud.