Freddie Mac Tries to Resolve Appraisal Issues
Freddie Mac issued a bulletin recently that will hopefully bring some relief to the appraisal controversy that has sparked in recent months.
The mortgage giant stated that appraisers are required to be familiar with the market where they work and choose the most appropriate “comparable sales” to the property that is being appraised.
In late June, we reported via Local Address that many realtors were blaming inaccurate appraisals for derailing home sales that were on the verge of closing.
Rules put in place by Fannie Mae and Freddie Mac now prevent brokers from ordering an appraisal directly from the appraiser. Instead, they have to go through the lender, who uses management companies to find individuals who are often inexperienced, unfamiliar with the market and can make costly mistakes.
While these rules remain in place, the guidance outlined in the bulletin will hopefully lead to more knowledgable appraisers and more accurate appraisals going forward.
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1 Comment
What a ridiculous comment for Freddie Mac to make….as if appraisers are not already requried and supposed to choose the most appropriate “comparable sales!” The only thing that will resolve this problem is a complete revocation of the ridiculous Home Valuation Code of Conduct that was forced upon Fannie & Freddie by NY AG Andrew Cuomo and a return to using knowledgeable local appraisers. All the HVCC has accomplished is to stymie the housing market recovery, line lenders and appraisal managemnt co’s
pockets with more fees,and increase the cost of homeownership. The regulation completely circumvented the standard process for such rules and it has not accomplished what it was supposed to. Mortgage originators, Realtors, homeowners, and homebuyers alike should be urging their representatvies in Congress to support the pending bill for an 18 month moratorium.