ASA, along with the Appraisal Institute (AI), the Association of Farm Managers and Rural Appraisers (ASFMRA), and the National Association of Independent Fee Appraisers (NAIFA), sent a letter to Treasury Secretary Timothy Geithner expressing “deepest concern” over the use of broker price opinions (BPOs) in valuing porpoerties to be short sold under the forthcoming Home Affordable Foreclosure Alternatives (HAFA) program.  The letter, sent March 8, goes on to emphasize the conflicts of interest and potential for fraud presented where BPOs are performed by real estate agents who often have a direct or indirect financial interest in the transaction, and stresses that the independence and competence of appraisals is essential to providing minimal safeguards in the short sale process.  Finally, the letter reminds Treasury that almost one-half of states currently have laws precluding real estate agents from performing BPOs for the purposes considered by HAFA.

To read the full text of the letter, click here.