What is it about?
The means clients of valuers such as banks apply to exert influence on valuers to bias valuations for mortgage lending. The essence of the influence is for the valuation outcomes to satisfy the interest of the client rather than being objective
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Why is it important?
Secured lending is an important aspect of banking activities. Valuation for secured lending like mortgages is to ensure that the lender is properly guided to make prudent lending decisions on the loan amount as this is usually based on the value of the collateral. Influencing the valuer to bias valuation will defeat this purpose with consequences for bank lending and the industry at large
Perspectives
The work is important for the property valuation profession and banking industry. It focuses on important aspects of services of both of them. Knowing how clients pressure valuers to engage in unethical practices to bias valuations, the clients motives, opportunities and incentives for doing it is essential in working out any measures to curtail the unwholesome activity
Dr Chukwuma C Nwuba
Kaduna Polytechnic
Mortgage valuation is crucial to decision making process in granting loans by banks and other financial institutions. Borrowers employ several means both subtle and direct to influence outcome of mortgage valuation process. This development is inimical to the mortgage lending process and integrity of valuers as professional.
babatunde salawu
Kaduna Polytechnic
Read the Original
This page is a summary of: Clients’ means of influence on mortgage valuation in Nigeria, Property Management, August 2015, Emerald,
DOI: 10.1108/pm-03-2014-0016.
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