Risks In Mortgaged Real Estate Appraisal And Risk Management

Real estate agencies include real estate appraisal, real estate consulting and real estate agent. As one of the main embranchments, real estate appraisal shows its more and more function in real estate dealing, real estate mortgage, pledge, insurance, tax, dispute; joint venture, combination, split and liquidation; real estate management and so on, according to the need in theory and in practice. As the reform in land-using system and housing system carrying through, real estate appraisal is gradually involved in and serve the real estate finance. Security is one of the main principles in the business of financial organization. Of all the risks in real estate mortgage loans which financial organization provide, risk of appraisal is the one that cannot be ignored. In order to protect the profit of financial organizations and appraisal companies, and promote the developing of mortgage loan market in our country, how to reduce the risks in mortgaged real estate appraisal is the problem that has to be solved currently.Basing itself upon the whole appraisal industry, this paper starts from analyzing the present situation of real estate appraisal industry, agencies and people engaged in this field, points out the existing problems and risks in mortgaged real estate appraisal. At last, this paper formulates the root of the risks and establishes a risk management system on the basis of risk distinguishing, risk testing, analysis of clients' credit, technical management in writing the appraisal reports, risk decentralization, loss dealing and risk transferring.