ACTION ALERT: Call Congress About Fannie/Freddie’s Risky Appraisal Waiver Program

ACTION ALERT: Call Congress About Fannie/Freddie’s Risky Appraisal Waiver Program

Freddie Mac & Fannie Mae have embarked on programs that waive appraisal requirements in first purchase and refinance transactions, using propriety models and generally unreliable data from MLSs and public records for collateral risk decision making.

According to Fannie & Freddie, this is being done to lower costs and shorten closing time for consumers. While Fannie Mae has indicated the appraisal waivers will represent only 5 percent of their loan portfolio, Freddie Mac has thus far being unwilling to provide estimates, indicating that as much as one-third of their portfolio may be offered appraisal waivers.

These programs will create unnecessary and unacceptable risks for taxpayers and homeowners, and they come at a time when markets are at all-times – when risk mitigation should be tantamount.

Congress is once again turning housing finance reform, and as they deliberate, they should hear from appraisers on why appraisal waivers are a bad idea and a risk to taxpayers.

Please click here and insert your zip code in box to retrieve the contact info for your Members of Congress, and talking points for your call.

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About icapweb

ICAP was established in 1994 to be a unified voice for Real Estate Appraisers in the State of Illinois

Posted on September 25, 2017, in The Good Stuff. Bookmark the permalink. Leave a comment.

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