The Republican representative from Diamond Bar, California, Rep. Gary Miller, is leading the charge for industry groups, including the National Association of Realtors and the National Association of Mortgage Brokers, to stop for 18 months the consequeces rendered by the Home Valuation Code of Conduct that went into effect May 1, 2009.

The push is for an 18 month moratorium on the new appraisal standards that have killed sales and making the housing crisis worse. These new standards have barred lenders from directly selecting appraisers on Fannie and Freddie mortgages. The goal was to stop the conflict of interest thought to have artificially have raised housing prices. Now lenders have to contract an appraisal though AMCs, or appraisal management companies, which then select the appraisal.

The unintended consequence is that the appraiser with the local knowledge and experience is not used, while appraisals are done by out of area appraisers with little clue about the nuances of the market.

 

 
Posted by San Diego Homes.org on 07/19/2009 04:41 PM   Comments (0)   Appraisals in the Mortgage / Finance Channel  
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