Fannie Mae Tightens Up on Appraisals

Reblogger William J. Archambault, Jr.
Real Estate Services with The Real Estate Investment Institute 1retiredsage

Please don't get to encouraged.

"The new language specifies that appraisers must have the "requisite knowledge" along with experience and the correct data to perform an appraisal.  This, after much concern has been expressed by industry professionals as to exactly how appraisers are currently being selected."

It may sound good, but it doesn't say any thing! The Fed' mandated the states license appraisers about twenty years ago. They are all ready suppose to have "the "requisite knowledge" along with experience and the correct data to perform an appraisal."

It was the same people that switched how appraisers were selected, that replaced the rare crook with the common incompetent!

This is the second reform by the sane shysters that caused the problems.

 

 

Original content by Claudette Millette

House with flying moneyFannie Mae Tightens Up on Appraisals 

Since the new appraisal rules went into effect last year there has been a noticeable decline in the quality of some of the work that has been turned out by appraisers.  This has been largely due to the fact that local knowledge of the market has been put on the back burner and, in its place, has been the goal of getting the job done as cheaply as possible. 

The net effect has been third party companies hiring appraisers from up to 100 miles away.  This, of course, negates any chance of their being familiar with the neighborhood that the property is actually in. 

Now it appears as though Fannie Mae has taken notice and has not liked the looks of some of the appraisals on mortgage loans sold to it by lenders.  As a result, they have just issued some new, more stringent requirements. 

The new language specifies that appraisers must have the "requisite knowledge" along with experience and the correct data to perform an appraisal.  This, after much concern has been expressed by industry professionals as to exactly how appraisers are currently being selected.  More detail on this via the Chicago Tribune

Fannie has also said that appraisal reports must now include more photos, including interior shots of the kitchen, main living area, all baths and any examples of physical deterioration and or updating that have taken place in the home. 

The tightening up of standards is definitely a step in the right direction.  Appraisals should not be compromised in an attempt to get them done cheaply. 

We all know that far too much is riding on the accuracy of the residential appraisal.

 

Copyright 2010 "Fannie Mae Tightens Up on Appraisals"

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Comments 4 New Comment

Ambassador
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Jon Zolsky
Selling Daytona paradise for heavenly good prices
Daytona Condo Realty, 386-405-4408

Bill,

i read the blog and it caused me laughhing. They finally acknolwdge that there was a problem with the quality of appraisals, exactly what they claimed to fix when they did the change. So now they are fixing the fix

July 20, 2010 11:51 PM
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William J. Archambault, Jr.
The Real Estate Investment Institute

Jon,

EXACTLY!

I don't think these people could fix a lose shoe lace, but I'm sure they'd form a committee well experienced with sandals.

Bill

July 21, 2010 08:07 AM
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George Souto
Your Connecticut Mortgage Expert
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut

Bill, the Government always seems to take some thing that wasn't broken, and break it by trying to fix it.  It scares me to think what would happen when they finally try to fix something that is broken :)

July 21, 2010 08:59 PM
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William J. Archambault, Jr.
The Real Estate Investment Institute

George,

It's all rhetoric, except for the cost! No one wants to help they simply want the ignorant to think so.

Bill

July 22, 2010 08:31 AM
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William J. Archambault, Jr.

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