Core Viewpoint - The article discusses the resurgence of the "high appraisal and high loan" phenomenon in the real estate market, particularly in Guangzhou, where banks and intermediaries are under scrutiny for potential violations related to inflated property valuations to secure higher loan amounts [2][3][5]. Group 1: High Appraisal and High Loan Phenomenon - "High appraisal and high loan" refers to the practice of inflating property values to obtain larger loan amounts, often associated with other gray market practices like "zero down payment" [5][6]. - Recent market conditions, including declining property prices and relaxed down payment ratios, have led to an increase in "high appraisal and high loan" activities, especially in the second-hand housing market [3][6]. - The typical inflation in property appraisal values ranges from 10% to 20%, allowing buyers to secure more financing than they would otherwise be eligible for [6][7]. Group 2: Legal and Regulatory Concerns - Legal experts warn that engaging in "high appraisal and high loan" can lead to multiple legal risks, including potential criminal charges for loan fraud and the invalidation of loan contracts [9][10]. - Various regulatory bodies have previously issued warnings about the risks associated with "high appraisal and high loan," emphasizing the need for compliance with legal standards in real estate transactions [10][11]. - The Guangzhou Real Estate Intermediary Association has cautioned against misleading practices such as "zero down payment" and has urged buyers to use legitimate financial institutions for mortgage applications [11][12]. Group 3: Banking Sector Response - Banks are reportedly increasing their scrutiny of "high appraisal and high loan" practices, focusing on the management of appraisal companies and implementing regular rotation mechanisms to mitigate risks [12]. - Despite these measures, there remains a risk of moral hazard within banks, which could allow "high appraisal and high loan" practices to persist if not adequately managed [12].