When evaluating the methods of house valuation, the general consensus with market participants from valuers to banks to software vendors is that a full valuation by an experienced and qualified valuer will yield the most accurate result, but a systemic risk still remains on the upside.Full valuation property valuers are routinely pressured by lenders to inflate the value of the property to aid in the bank approving the loan.The property valuer does not profit from the transaction, except potentially from the higher levels of business generated.Brendon Hulcombe, CEO of Herron Todd White, agrees "Yes there are, of course", when asked if any of his valuers are pressured."Valuers are pressured quite routinely."The lender has sales targets to meet, (the individual person), and their bonuses are based on those sales targets and so it is in their interest to not necessarily look at the creditworthiness of the loan application, but more so to get the deal through."The easiest way to get the deal through is to get a higher valuation."So when pricing a residential mortgage backed securitisation for risk by valuing the underlying asset and loan quality, the process essentially is flawed.At times electronic values use questionable data, although the canvassers will tell you another story, and the most accurate technique of full valuations is fundamentally flawed as individual lenders chase bonuses, or the property valuation is dated, yet compared to the current loan value.