It’s not a done deal, but as a plugged-in reader notes it’s looking like Fannie Mae (“the biggest source of financing for U.S. home loans”) will ban the use of in-house or broker arranged appraisals.
The proposed changes include banning Fannie Mae’s partners from using appraisers employed by their wholly owned subsidiaries. Mortgage lenders that own appraisal companies include Countrywide Financial Corp., the nation’s largest home- loan originator.
The restrictions would apply to loans acquired after Sept. 1, according to the memo. Fannie also told lenders that an independent appraisal clearinghouse likely would be established.
Will Jumbo players follow suit? And is there any chance of extending the ban to those who hawk “instant equity based on last appraisal” as well?
∙ Fannie Proposes Ban on Lenders’ In-House Appraisers [Bloomberg]