The Charlotte Observer is one of the few newspapers looking into appraisal fraud. "Members of the home mortgage industry took their turn Tuesday to explain to a special committee of the North Carolina House why so many state residents are losing homes to foreclosure. They said most foreclosures are the result of turmoil in borrowers' lives, and the rising numbers are a natural consequence of increased lending to people with lower incomes or credit problems."

"They acknowledged that some of their colleagues have inflated the cost of loans or the price of homes, or imposed unnecessary fees. But most speakers argued against sweeping new laws, saying most of the problematic conduct is already illegal, and the focus should be on increased enforcement."

"'I think there's some level of increased foreclosures that we're just going to have to live with in exchange for making credit available to more people,' said Bill Bost, general counsel of the N.C. Association of Mortgage Professionals."

"'We need to be held accountable and there need to be consequences,' Bob Ipock, a Gastonia appraiser, told the committee."

"The committee heard from representatives of the banks who provide money, the brokers who sell loans and the appraisers who value homes. They said high-interest loans have played a key role in raising home ownership rates to record levels. They also urged the state to spend more on educating borrowers so they can defend themselves. 'I'm not sure counseling helps that much because I'm not sure people listen to what they don't want to hear,' said Rep. Robert Grady."

"At times Tuesday, the testimony veered into finger-pointing, as representatives of one industry group told the committee the problems lay elsewhere. Appraisers pointed at lenders and brokers, and they pointed back at the appraisers."

"Members of the committee at times appeared incredulous, or amused. 'Would you agree that at least some appraisers might be less than honest?' a legislator asked an appraiser who had just finished a defense of his industry. Yes, the appraiser conceded, that was possible."