Bank of Spain proposes valuers are independent from banks

The Bank of Spain has finally proposed that valuers are independent from Banks and separate from the lending institution.  This has been a long time in the coming and considered a contributing element in creating the property bubble. It is common that Spanish banks own a percentage of the valuation company carrying out their appraisals.

In a report issued to the banks and their valuers, they also suggest, very sensibly, that

loans should not be over 80%

that banks use more than one valuation company

They should view any previous valuation before making a lending decision

The banks also states it doesn’t not believe in massive, desktop valuations and that the valuer should always visit the property, including an internal inspection.



Leave a Reply