Fannie Mae eyes “quality monitoring” of appraisers WASHINGTON – Jan. 31, 2014– Fannie Mae reportedly has created a blacklist of appraisers that have questionable practices, hoping the list will serve as a warning to banks and mortgage lenders that doing business with appraisers on the list. Loans involving appraisers who appear on Fannie Mae’s “appraisal quality monitoring” list will face extra scrutiny before the government-sponsored enterprise agrees to buy them from lenders. So far, just four names appear on the list. But Fannie says it will be scouringits appraisal database to identify appraisers who repeatedly submit unacceptable appraisals – with red flags including inflating the appraised value of ahome, misstating the characteristics of a house, and failing to use the best comparable sales of physically similar properties. “This is just the beginning,”says Andrew Wilson, a spokesman for Fannie Mae. “We will continue to do these reviews and make additions to that list as we identify appraisers that we have concerns about.” Fannie has not made its list public yet – it is only accessible to lenders. Appraisers who appear on Fannie’s list are contacted. Those on the list also have already been reported to state appraisal boards for violations of the Uniform Standards of Professional Appraisal Practice. Fannie has created a rebuttal process for appraisers and lenders. “Lenders are likely to beef up their oversight of appraisers so they don’t fall into the trap of submitting loans that could end up being rejected,”says Elizabeth Green, a principal consultant at the consulting firm Rel-e-vent Solutions. “This is another aspect of the same quality vigilance that lenders have to have in place. There’s just too much risk if you don’t manage for this.” Source: “Fannie Creates Appraiser Blacklist in Effort to Flag Problem Loans,” American Banker (Jan. 28, 2014) © Copyright 2014 INFORMATION, INC. Bethesda, MD (301) 215-4688
Posted on: Sat, 01 Feb 2014 16:22:14 +0000
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