The American Society of Appraisers (ASA) and several other leading appraisal organizations have issued a joint comment letter about the agreement that was reached in March and signed by New York Attorney General Andrew Cuomo, the Office of Federal Housing Enterprise Oversight, and Fannie Mae and Freddie Mac.
The ASA says it strongly supports the intent of the agreement but urges changes to eliminate unintended negative consequences to appraisers and consumers.
For example, by banning mortgage broker-ordered appraisals, the agreement will destroy well-established business relationships between honest appraisers and reputable mortgage professionals, the groups claim in the letter. In addition, the agreement may unintentionally encourage the use of large companies that manage appraisals and make their profits by turning out appraisals quickly with less emphasis on quality, the groups add.
According to ASA, the agreement also unnecessarily bans appraisals prepared by appraisers working for federally regulated financial institutions and other lenders with independent appraisal operations (those reporting to risk management versus loan production).
The full text of the letter is available at www.appraisers.org/images/fastread/May_1_08/JointLtr.pdf
Source: American Society Of Appraisers