Posts tagged ‘appraisals’

Realtors, Brokers Target Home-Appraisal Rule

From WSJ-

http://online.wsj.com/article/SB10001424052748704289504575312671921408674.html?mod=WSJ_RealEstate_LeftTopNews

The mortgage-broker and real-estate industries are pushing to have a measure that would kill new home-appraisal rules inserted into pending legislation to overhaul financial-sector regulation.

The Home Valuation Code of Conduct, adopted in May 2009 to ensure appraiser independence, bars mortgage brokers and bank loan officers from selecting appraisers.

Mortgage lenders, on the other hand, are trying to fend off the measure. Several big lenders own or have a stake in companies that have seen a surge in business as a result of the new rules. (aka- AMC’s or Appraisal Management companies, this includes BPO Management Companies)

The Code of Conduct was adopted last spring by Fannie Mae and Freddie Mac, the government controlled mortgage giants, in settling a New York state attorney general’s probe of their appraisal standards.

(The entire investigation was brought about specifically by Andrew Cuomo, former HUD Secretary, who by the way made a series of BAD and politically motivated decisions between 1997 and 2001 that gave birth to the country’s current economic crisis.

He took actions that—in combination with other factors—helped plunge Fannie and Freddie into the subprime meltdown. He turned the Federal Housing Administration mortgage program into a sweetheart lender with sky-high loan ceilings and no DOC, no money down loans.

Basically he legalized what a federal judge has branded “kickbacks” to mortgage brokers that fueled the sale of overpriced and unsupportable loans. Four to five million families are now facing foreclosure, and Cuomo is one of the reasons why. Now Fannie and Freddie are going to CONSUME ONE TRILLION DOLLARS of TAX PAYER money.

This criminal, cuomo, was also responsible for the collaps of Lehman Brothers. Basically, Lehman CEO didn’t kiss Cuomo’s behind during his campaign bid and didn’t kick in millions to his political run. So, out of spite, Cuomo opened up an investigation of Lehman.

The rest…is well history. Cuomo is nothing more than a mafia hoodlum. This guy has single handedly corrupted HUD, Fannie, and Freddie. Destroyed the Appraisal industry and brought about the demise of Lehman.

June 18, 2010 at 6:37 pm Leave a comment


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