May
30

Regulator Criticizes Appraisal Agreement

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May 28, 2008

By THE ASSOCIATED PRESS

The regulator who oversees national banks is protesting an agreement by the mortgage buyers Fannie Mae and Freddie Mac to stop buying loans involving lenders’ in-house appraisers, a deal intended to protect buyers from fraudulently inflated home prices.

The comptroller of the currency, John C. Dugan, is asking for withdrawal of the agreement that the two mortgage finance companies negotiated with the New York attorney general, Andrew M. Cuomo, and their federal regulator, on grounds that it violates federal law and could have an unintended negative impact on the mortgage industry.

Mr. Dugan on Tuesday joined another federal regulator, the Office of Thrift Supervision, and mortgage industry interests who previously criticized the agreement that is scheduled to take effect next year, which would ban lenders from using in-house appraisers and block mortgage brokers from ordering appraisals.

Fannie Mae and Freddie Mac, Mr. Cuomo and the Office of Federal Housing Enterprise Oversight, or Ofheo, reached the accord in early March, ending an investigation by Mr. Cuomo into billions of dollars of loans Fannie and Freddie had bought from lenders. The two government-sponsored companies agreed to buy only mortgages for which appraisals were made by companies independent from lenders.

ARTICLE SHORTENED DUE TO LENGTH….

LINK TO ARTICLE HERE:
http://www.nytimes.com/2008/05/28/business/28lend.html?ex=1212724800&en=2514ba1742913131&ei=5070&emc=eta1

Categories : Appraisal News

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