The National Association REALTORS® and the
National Association of Mortgage Brokers are pushing hard to delay
implementation of the new Fannie Mae and Freddie Mac rules governing
real estate appraisals.
The new rules are supposed to take effect
May 1, but the REALTORS®, in a letter to the Federal Housing Finance
Agency, argued that there hasn’t been enough time to properly implement
the changes and the result would be higher costs for borrowers. They
seek a one-year moratorium.
The goal of the change is to eliminate
alleged collusion between mortgage lenders and appraisers to pump up
home values. Among other things, the rule change prevents mortgage
brokers from ordering appraisals directly, requiring them to go through
lenders. Mortgage brokers say this will make it hard for them to
compete with lenders.
Borrowers shopping for the best rate could
be asked to pay for multiple appraisals, says Michael Carrier, an
associate with the Mortgage Bankers Association.
Read the NAR's letters to Fannie Mae and Freddie Mac on the issue.
Source: The Wall Street Journal, Jessica Holzer (04/29/2009)