In property appraisal, who is primarily protected by the Appraiser Independence Requirements?

The Appraiser Independence Requirements are primarily designed to protect borrowers. These regulations ensure that appraisers can perform their evaluations impartially and without undue influence from parties with a vested interest in the transaction, such as lenders or real estate agents. By safeguarding the integrity of the appraisal process, these requirements help ensure that the property's assessed value reflects its true market value, which ultimately protects borrowers from inflated valuations that could lead to financial harm in the long run.

This framework is essential because it promotes fair lending practices and reduces the risk of deceptive activities that could disadvantage borrowers. Ensuring that appraisals are unbiased is vital for maintaining trust in the mortgage lending process and for upholding the stability of the real estate market overall. While lenders, appraisers, and real estate agents may all have their interests, the primary focus of these requirements is to safeguard the interests of those who are borrowing funds to purchase property.