The more CASH the buyer puts down the greater the risk to the buyer. That risk also needs the further protection of having the title searched for the buyer's benefit and not just the lender whose risk is the loan amount, not the equity portion.
Let's not forget that the appraisal is often the least expensive item of all the closing costs. To promote cutting out an appraisal as a "help" to the customer in making housing more affordable is C**P of the highest order!
Don't see Fannie or Freddie promoting lower fees to loan officers or lower commissions to RE agents!
Absolutely ! That's one of my rant buttons. This appraiser bashing needs to be turned around on them. What about their debt ratio ? (which I hear is 60% ). Fannie dosn't want investors to hear about this. They were pissed when Wall St. Journal had something to say about it. Hell if I was trying to hide this amount of debt, I won't want any appraisals done either.
The more their portfolio is inflated the better.