Center for Responsible Appraisals announces new charter members.

The Center for Responsible Appraisals and Valuations announced eight new members that have joined its organization and, as such, compose the first group of appraisers, lenders, and industry experts nationwide to become charter members, dedicated to ensuring fair and accurate appraisals for homebuyers.

The Center, founded by the National Community Reinvestment Coalition, is working to end abuses associated with appraisal fraud and inflation, which occurs when a lender, appraiser, realtor, broker or title company improperly influences a home's value through the appraisal. NCRC is a nationwide community development group that works to protect consumers against unfair lending practices.

Charter members will be key partners in helping to develop the initial goals and the standards for the Center as it expands its presence in the residential real estate industry, said David Berenbaum, NCRC's Executive Vice President and a founding member. The charter members will transition into a Partner Council Membership within the next three to six months and, in doing so, will play a vital role in helping the Center strengthen and align the processes within the industry. "We salute the appraisers, lenders and industry experts who are the first to become charter members of the Center. Their willingness demonstrates their commitment to ensuring borrowers receive an accurate price and not the price that will increase the profits of those making and closing loans," said John Taylor, President of the National Community Reinvestment Coalition, which founded the Center in November 2005, after receiving a dramatic increase in consumer complaints about appraisal fraud and inflation. NCRC works to ensure fair lending practices across the country.

The higher standards for management companies include: A mandatory yearly audit to ensure that systems are in place to catch potential instances of abuse; a whistleblower hotline for appraisers who claim that improper influence has been attempted; special training and certifications as well as internal policies prohibiting improper influence; the use of appraisers who have agreed to the Code of Conduct on virtually all assignments over a period of time; the agreement by the management company and its affiliates that it will not take a valuation assignment on any loan in which it or its affiliate is performing any other closing service, such as loan origination, title or escrow.