• Thu. Dec 1st, 2022

Property appraisers on strike

ByWillie M. Evans

Mar 21, 2022

Real estate appraisers who do mortgage appraisals are on strike until April 3, 2022.

According to a report by idealista/news, the strike was organized by the Movement of Real Estate Appraisers (MPAI) and began on Saturday March 19.

“The MPAI is promoting the suspension of ratings for banks during this week and next week: between March 19 and April 3, 2022. In this period, and after debate among MPAI supporters, it has been decided that the experts refuse to work under unsustainable conditions,” reads a statement from MPAI.

According to the MPAI, which was created in 2018 with the aim of fighting for the improvement of the conditions of real estate appraisers in the national financial system – banks, credit institutions, investment funds, among others -, “in the process currently put in place there are practices that the experts dispute and which can affect the end customer, who is in reality the one who pays for the expertise”.

Lack of control

In the document, the MPAI mentions, for example, the lack of control “of the existence of non-certified experts in the field visiting properties and preparing appraisal reports, subsequently signed by other experts registered with the CMVM (which contravenes Law 153)”.

Another of the measures required by the MPAI is the extension of the deadlines for submitting evaluation reports. “Control and coercive requirement of execution deadlines, not compatible with the time required for careful technical analysis; most of them impose deadlines of 1-3 days for receipt/completion/delivery of the report of ‘assessment under penalty of remuneration,’ the document reads.

With regard to fees, the movement specifies that the remuneration of the expertise services provided by appraisers registered with the CMVM is not compatible “with the costs inherent in the execution of the processes and the sustainability of the activity for the payment of new expenses related to the activity, such as civil liability insurance and CMVM fees. Experts only receive, on average, 17% of the value of the expertise that the client pays to the bank”, reveals the MPAI.