Chitwan. Appraisers are worried after banks started blacklisting appraisers as the value of collateral fell.
The Nepal Valuers Association has argued that banks should not blacklist appraisers, citing the issue of valuations done when the value of collateral increased and valuations done now when the transaction is low.
Association President E. Sanjay Kumar Mahato said that banks have started blacklisting appraisers by showing them the guidelines of the Nepal Rastra Bank. He said that appraisers are blacklisted if they do not complete two-thirds of the pre-Covid appraisal and post-Covid appraisal.
‘This has led to frustration among appraisers, and if this situation persists, there is confusion about whether to appraise or not,’ he said. Stating that the valuation of mortgages has now decreased by more than 30 percent on average in every part of the country, he said that banks should not blacklist appraisers.
Central Advisor E. Laxmanbabu Sedhai said that it is wrong to blacklist appraisers as they work as a coordinator between banks and their customers. He said, ‘It seems that there will be problems when banks move towards taking action against valuers.’
Says that the value of land and other machinery that are currently held as collateral has decreased, and he stressed that banks should act thoughtfully in this situation. He says that such activities will lead to a situation where engineers will flee.
E. Amodraj Acharya, Koshi Province President of the Association, said that banks are taking action even though there is no legal basis for blacklisting. He said that the problem was that two-thirds of the first appraisal was not completed.
Sanjay Chandra Neupane, president of the Chitwan chapter of the association, mentioned that banks have been discouraging appraisers who facilitate bank borrowers. He said that banks are conducting appraisals for the second time and auctioning the borrowers’ collateral at a low price.
E Ishwari Prasad Kaudal, founding president of the Chitwan chapter, said that problems have started arising among appraisers due to unhealthy competition. Krishna Rijal, President of the Nepal Engineers Association Bharatpur Center, said that banks should understand that the value of collateral fluctuates depending on time and circumstances.
More than four thousand engineers are currently affiliated with the Nepal Valuers Association.
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