According to columnist Kenneth Harnet, a real estate columnist with the Washington Post, he feels strongly in the affirmative along with representatives of the largest trade organizations representing appraisers.

The trade groups are seeking help from the Federal Financial Regulators to crack down on the lenders and loan officers who pressure appraisers to raise the valuations.

Led by the Appraisal Institute, the group representatives when speaking to Federal Regulators, told them that sub-prime lenders were guilty of "systemic inattention"to the accuracy and the sources of the valuations used to back the loans being funded.

Examples given included buying loans without regard to the qualifications and track records of the appraisers, failing to require "Fire Walls" separating commissioned loan officers from the appraiser and claims by appraisers that they were coerced, threatened and even failed to receive payment for non favorable opinions of value.

The increase in loan scams and outright fraud were cited with detailed descriptions on how these cash-out schemes were orchestrated to be successful.

The inflated appraisals were required in all these cash-out schemes and after the deal was done, with a few months, the property is headed for foreclosure. Is it any wonder their is an increase in foreclosures. The represent the intended consequences of some really fraudulent schemes. In all the figures of the increase in foreclosures of properties with sub-prime loans in place, this aspect has not been as heavily focused on as it should be.