Bill to penalize false home appraisals gains momentum, an article from The Denver Post, reports that SB07-85 received a unanimous vote from the Senate Business, Labor and Technology Committee. Next, Senate Appropriations will review the costs associated with the bill. Pressuring an appraiser or falsifying an appraisal would become a serious misdemeanor under the bill, with repeat offenses treated as felonies. Under the current rules, appraisers risk losing their licenses and face fines if they falsify their work. Prison time is unusual and those attempting to pressure or bribe an appraiser face no sanctions. Colorado Attorney General John Suthers believes that stricter penalties are needed. Over-inflated appraisals can artificially boost home values, leading buyers to pay more than a property is worth, and making them vulnerable to foreclosure when they try to sell or refinance.
http://www.denverpost.com/economy/ci_5221537
