StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Are Real Estate Appraisers To Blame For The Recent Real Estate Crisis In America - Research Paper Example

Comments (0) Cite this document
Summary
Are Real Estate Appraisers To Blame For The Recent Real Estate Crisis In America? [Type the author name] [Pick the date] The question of blame in any economic or financial crisis, whether it is private or public, rests upon an agreed-to definition of “blame.” Blame, in its legal and convention context, is equivalent to responsibility for some phenomenon, normatively judged as bad for either oneself or others…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.1% of users find it useful
Are Real Estate Appraisers To Blame For The Recent Real Estate Crisis In America
Read Text Preview

Extract of sample "Are Real Estate Appraisers To Blame For The Recent Real Estate Crisis In America"

Download file to see previous pages An immediate caveat to saying that one segment of controls and regulations is responsible for a systemic crisis that affected not only a market but also the entire world is that this responsibility is not all encompassing. The definition of systemic is derived from the word “system,” which refers to several (more than one) distinct parts. Thus, to assign all blame to one part of the system implies that one part of the system was actually capable of creating a crisis. This assumption, along with the assumption that real estate appraisers were solely responsible for the crisis, are false; however, the issue of whether they played a significant role in the market failure is an important one to consider not only for historical purposes, but also for the purposes of policy and economic reform. From the literature since 2008, it is the finding of most experts that real estate appraisers contributed in large part (but not wholly) to the real estate crisis, due primarily to the decentralization of regulatory responsibility. The first component of assigning blame to any individual or group is to understand the role that they played in the system. According to scholars in the field of corporate accounting, significant portions of blame belong to all of the key players (and their respective roles) in the economic collapse.1 For instance, if it were not for homebuyers and their willingness to take out mortgages that they could not repay, there would have been no mortgage defaults for the financial markets to feed on. These authors also give blame to the issuers of credit default swaps, which were sold to investors as a significant source of income. These swaps, however, began to lose value rapidly when housing prices began to slide. In the middle of these two parts of the system were the mortgage originators, who typically received fees up front and accordingly had little incentive to make sure borrowers did not default on their loans. A piece of this part were the real estate appraisers, who likewise had no incentive to appraise homes for prices lower than a minimum price needed for a mortgage to be approved. If a real estate appraiser was thoroughly honest in all of its dealings, and it blocked too many transactions, there would be no demand for its services from partners. This element of marketplace competition and an incentive against honesty does not earn real estate appraisers any support among those looking for a major source of responsibility for the real estate crisis. However, certainly real estate appraisers did not complete their work in a vacuum: it was part of a process (a market process) that led to incentives for certain actions and outcomes over others. Consequently, the notion of assigning blame should extend beyond the circumstances that appraisers found themselves in. One way of doing this is identifying carelessness and negligence in the way in which they carried out their work. One example of this is how real estate appraisers have been accused of actively colluding to raise home prices artificially, which would encourage homeowners to continue to build home equity. Appraisals would occur on “cursory drive-by inspections and comparisons with nearby homes that had recently been sold or refinanced.”2 These comparisons were done on occasion to homes these same appraisers had valuated months before. If the ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Are Real Estate Appraisers To Blame For The Recent Real Estate Crisis Research Paper”, n.d.)
Are Real Estate Appraisers To Blame For The Recent Real Estate Crisis Research Paper. Retrieved from https://studentshare.org/law/1431777-are-real-estate-appraisers-to-blame-for-the-recent
(Are Real Estate Appraisers To Blame For The Recent Real Estate Crisis Research Paper)
Are Real Estate Appraisers To Blame For The Recent Real Estate Crisis Research Paper. https://studentshare.org/law/1431777-are-real-estate-appraisers-to-blame-for-the-recent.
“Are Real Estate Appraisers To Blame For The Recent Real Estate Crisis Research Paper”, n.d. https://studentshare.org/law/1431777-are-real-estate-appraisers-to-blame-for-the-recent.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Are Real Estate Appraisers To Blame For The Recent Real Estate Crisis In America

Recent Patterns of Change in the Management of the Employment Relationship in the UK

In this context, it should be mentioned that Schuler et al. (1998, 159) there are a few issues that need to be taken into consideration when formulating the human resource strategy of a particular organizational environment: ‘a) the business structure, b) the legislative and employment relationship context, c) the patterns of HRM competence and decision-making and d) the national culture’. The above views are supported by Gooderham et al. (1999, 507) who stated that ‘despite their very different assumptions, both rational and institutional explanations of organizational structure and management practices predict similarity among firms that operate in the same industry within the context of a simple country’...
9 Pages (2250 words) Assignment

The Constitutions of the United States of America and the United Kingdom

The principal characteristic of a functioning democracy is the separation of powers. The concept of separation of powers is complex, although it may seem to be simple. This is because it consists of expressive and rigid components. The US Constitution represents the operational capability of the notion of separation of powers. It operates on three functions of the government. First, the executive implements legislation and supervises the administration over the state. Secondly, the legislature enacts the legislation and monitors the work of the executive and lastly, the judiciary interprets the legislations to apply land laws3.

The British Constitution is an unwritten constitution. Therefore, the limitations of the orga...
7 Pages (1750 words) Essay

The Real Face of Corporate Social Responsibility

Effective communication is an important tool that has wide-ranging influence in the smooth functioning of corporate bodies. The role of corporate communicators is significant in the administration of the organization and projection of the organization’s aims and objectives in the eyes of the public and stakeholders.

Corporate communicators normally use a variety of techniques to communicate with different people. The administrators and managerial staff use effective communication to disseminate information about the changes that need to be made and make special efforts to create a barrier-free work environment. The barrier-free atmosphere and friendliness testify mutual respect and easy accessibility of management...
9 Pages (2250 words) Assignment

Is Your Reality for Real

It is hoped that with the insights shared, the readers will come to a realization that all individual though unique and may be constrained by certain factors, is still capable of achieving a reality that will benefit not only him but the world around him as well. It only takes open-mindedness and willingness to teach and to learn in order to create that intended reality. Existing realities need not be questioned nonetheless, for they are the ones that make living more meaningful and challenging.
Reality is not just an illusion or something that exists in the mind of a single or a group of persons. If it had been the case, the misunderstanding would definitely be a constant part of the reality. Part of what makes a man human i...
16 Pages (4000 words) Assignment

The Aspects of Creating America

It is a phenomenon that has existed since the beginning of the United States. In some ways, the fact of the phenomenon is explainable. At the time America began to be populated by Europeans, the written discourse had become the accepted means of communicating ideas, so it was only logical that the brave new American world would be written about and defined by its various inhabitants. Too, the advent of a truly new country, far from the Old World, created a shared experience among the settlers that bound them together more effectively than their European nationalities could do. Add to that the fact that most of the people brave enough to make the journey across the sea to the strange lands of peril and promise were by nature curiou...
7 Pages (1750 words) Term Paper

The Real Victims of Hitlers Regime

The great debate between the historians across the world that if German suffering was solely caused due to Hitler’s actions or not.
This paper focuses on the steps taken by Hitler that has led to the initiation of World War II and how much those steps have amounted to the fall of Germany as well as the victimization of its citizens. This paper will also focus to some extent over the debate whether Hitler was solely responsible for the initiation of the World War II or the Western allies also played an important part to accelerate the causes behind the war. In this process, several books will also be referred and evaluated to reach the conclusion.
In his book, Withstanding Hitler in Germany, 1933-45, Michael Leonard...
7 Pages (1750 words) Case Study

The Effects of Financial Crisis on Supplier Selection Criteria of the Oil and Gas Industry Equipment Market

It is a difficult task to find those vendors who not only have the adequate quality and quantity of the needed raw materials but who also have an attitude of efficiency and display commitment to customer service (Sonmat, 2006). Further, organizations also strive to locate and select vendors who can be depended upon for long term relationship.

The number of factors or attributes desired from the vendor is vast, and different organizations and different industries place different importance on the attributes (Sonmat, 2006). Some of the vendor attributes may gain importance owing to the nature of the industry, for example, in the case of consumer perishables suppliers, like fresh vegetables or fruits, the buying firm would...
20 Pages (5000 words) Literature review

Effects of the United States of America Troops in South Korea

Despite the few negative incidences of crime committed by the United States of America’s security troops that were deployed in the country on a peacekeeping mission.
Since the war in Korea began in the early nineteen fifties, the United States has stationed tens of thousands of soldiers, mostly the United States’ army personnel, in South Korea. Through the assistance of the South Korean troops and other neighboring governments, the American troops have been able to guard and offer maximum security to South Korean people. In line with the argument of James (2003), ‘most of the military bases in South Korea are relatively isolated’ thus the need for much attention from the troops so as to ensure maximum...
10 Pages (2500 words) Assignment

Business Plan Real Estate Agency

re representing our company as their business consultants and our responsibilities are limited to the knowledge of the client’s business and information provided by the client.
The company Of-Fit has been operating as office supplies and equipment supplier since 1998. Their corporate office is in Aberdeen and it has excellent industry relations. The company is a sole proprietorship and its owner is Mr. Andrew Schwatz who has been working in the industry for more than 20 years. The company current staff is 8 and its revenues are £115,690 and £156,178 in 2008. The company aims to expand its operations in other business areas and regions of the UK.
The detailed business plan developed for this report incor...
12 Pages (3000 words) Business Plan

Capital Asset Pricing Model and Recent Developments

It is the most essential aspect of any venture. The important considerations that finance has within it, is that of profit and loss. The business as a whole or a person as an individual always strives to earn a profit. To earn a profit, one has to undertake uncertainties that are known as risks. Therefore, profit is also known as the reward for incurring risks.
In the present world of today, the capital market has come up as a viable investment opportunity for individuals all across the globe. People invest their hard money only with the expectation to earn profit or return. The stocks of various companies that are traded in the capital market are also known as capital assets. Prior to investing in any of the stock or capital...
7 Pages (1750 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic Are Real Estate Appraisers To Blame For The Recent Real Estate Crisis In America for FREE!

Contact Us