Rober Bruss is well known as basically hating appraisers. Some appraiser must have come between him and one of his flips at some point. He regularly says some pretty dumb things and gives dumb advice about how to deal with appraisers. His understand of what we do is very superficial.
If a bank wants to reduce their exposure to bad loans, they don’t need to lean on an appraiser to do that – they can simply cut their maximum LTVs – problem solved. What’s more likely happening is that now the lenders are actually doing their jobs and preventing the fraudulent loans from getting booked; and its starting to cut into the champagne wishes and caviar dreams of these RE flippers.
Bottom line here is while Bruss may be knowledgable about a lot of other areas in the RE business, he is an idiot about appraisal issues. I recommend you completely ignore him – I do.
