NAMB announces call-to-action on GSE appraisal agreements : New GSE policy prohibits Mortgage Brokers from ordering appraisalsMortgagePress,comNAMB, GSE, appraisals, oredering appraisals, Andrew Cuomo, New York Attorney General, Fannie Mae, Freddie Mac
A message from NAMB President George Hanzimanolis,
CRMS
Fannie Mae and Freddie Mac recently entered into agreements with
the New York Attorney General that will prohibit mortgage brokers
from ordering appraisals. The GSEs are accepting comments on these
agreements until Wednesday, April 30.
Please respond to this critical call-to-action and tell the GSEs
that there are better ways to address concerns over appraiser
pressure and coercion, and that mortgage brokers help keep consumer
costs down and promote comparison shopping when they order
appraisals for their customers.
Below you will find a sample letter, which you are free to use
in its entirety or modify, but please take a moment and submit your
comments to the GSEs.
Comments may be sent to Fannie Mae by clicking here,
and Freddie Mac by clicking
here.
The agreements between the GSEs and New York Attorney General
Andrew Cuomo were entered into on March 3, 2008 and are scheduled
to take effect January 1, 2009. A copy is available by clicking
here.
This may be the most important issue facing our industry
today.
It is vital that you share your comments with the GSEs by April
30th.
Thank you for all of your continued support.
George Hanzimanolis, CRMS, President
National Association of Mortgage Brokers
SAMPLE LETTER
Dear Sir/Madam:
I am a mortgage broker and a member of the National Association
of Mortgage Brokers (NAMB). I am writing to express my grave
concern over the appraisal agreements entered into by the GSEs and
New York Attorney General Andrew Cuomo.
Although I support the concept of a Home Valuation Code of
Conduct, I strongly oppose the prohibition against mortgage brokers
ordering appraisals for their customers. Under this Code, consumers
will be financially tied to whichever lender they submit an
application to first. If the consumer needs to submit an
application to another lender, for any reason, a new appraisal must
be ordered, the consumer's costs will rise significantly, and
unnecessary delays are likely to follow.
All of this creates a disincentive for consumers to shop around
for a mortgage loan that is right for them, and penalizes consumers
if they ever need to change lenders in order to secure approval, a
better rate, lower fees, or a more attractive loan product or
program. Additionally, appraisal quality will suffer if local,
independent appraisers, who have longstanding professional
relationships with mortgage brokers and real estate agents, are cut
out of the process.
Moreover, there are a number of possible alternatives to this
Code that would actually address the problem of appraiser
independence, while promoting consumer protection and comparison
shopping, without disadvantaging an entire segment of the industry.
Some better alternatives include:
•Establishing a Peer Review System for Appraisals.
•Requiring Lenders to Conduct Independent Appraisal
Reviews.
•Providing Regulators with the Resources Necessary to
Conduct Comprehensive Audits and Review.
•Mandating accountability for appraisers will benefit
consumers and the industry far more than targeting long-standing
business relationships that present no inherent problem.
If the Home Valuation Code of Conduct takes effect as it is
written today, it will harm consumers and put me out of business,
along with thousands of other mortgage brokers and the small,
independent appraisers who rely on us for their business.
Please reconsider the prohibition against mortgage brokers
ordering appraisals for their customers.
Sincerely,
INSERT YOUR SIGNATURE HERE
