FANNIE MAE Announcement

[The Bob]

I keep getting an error message in Adobe, can only see last few pages. Could you please post the address and I will try to download directly. Thanks

 

[Red Blumenstock]

Frank,

Thanks very much for posting this. I hope they will do what they say. I try to be an optomist, but where Fannie Mae is concerned, by past experience, I definitely see the half empty glass. If they follow through on this, I will be pleasantly surprised. What they have said and what they have done in the past leaves me in doubt.

Red

 

[Tim Hicks (Texas)]

Thanks for posting this letter. I have already sent it over to a USPAP teacher for his class tomorrow so he could show his student "printed proof" of these issues. I know several appraisers who continue to ammend the limiting conditions, utilize land/home sales and really continue to argue the "appraisal update" issue with regard to re-inspecting the property and how to present the update. I hope they do follow through with their promise to forward unacceptable appraisal reports to the respective state boards. I have conducted seven field reviews for Freddie in the past three months. All seven reports were completely unacceptable and the spokesman for Freddie gave me the "we will get back to you" speech about turning them in to the state.

 

[Leon Stewart]

Hi All, *LINK FIXED*

Just received a copy of an announcement sent by Fannie Mae to Lenders yesterday.

You will have to decide for yourselves, but I believe it is filled with good news. Page 3 is particularly interesting. Also there is some good clarification of Updating an Appraisal Report on Page 5.

Six Page PDF file

*FANNIE ANNOUNCEMENT*

I don't get the point of this announcement, it appears to be too little too late. It was only a few weeks ago that FNMA made an announcement that they are allowing borrowers to pay $ 50 and not even get an Appraisal Report, so for a process that they are phasing out, why worry about quality when in a few months there will not be any significant number of Appraisal Reports to deal with anyway? Someone at FMNA is not playing with a full deck, or they have a lot of policymakers going in different directions.

leart3

 

[Anonymous]

<span style='color:blue'>Isn't Fannie Mae supporting the $50.00 "Appraisal Waiver"? I wouldn't be counting my chickens quite yet.

I know! Let's improve the guidelines for appraiser selection and review! Great!

Or if you like, we can waive all that for 50 bucks!


</span>

 

[Leon Stewart]

Toast:

I don't get your point. FNMA has already waived the Standards when they created the $ 50 fee to replace the Appraisal Report. When FNMA created the $ 50 fee a few weeks ago to replace the Appraisal Report, there is no longer a requirement for a Report, so why would they have Standards for a (nonexistent) Report.

leart3 :twisted:

 

[Francois K. Gregoire]

I don't get your point. FNMA has already waived the Standards when they created the $ 50 fee to replace the Appraisal Report. When FNMA created the $ 50 fee a few weeks ago to replace the Appraisal Report, there is no longer a requirement for a Report, so why would they have Standards for a (nonexistent) Report.

leart3 :twisted:

Leart3,

You might want to read Ken Harney's article a little more closely.

ARTICLE

The program which concerns you is a PILOT program. It has not been implemented nationwide. Even if it is, it's unlikely to cover ALL property types or ALL transactions.

At any rate, many readers of Wayne's World do Fannie work. Many readers are concerned about the actions of some of their competitors. Many are concerned about pressure from lenders and loan originators. Each of these was addressed in the Announcement from Fannie.

 

[Jo Ann Meyer Stratton]

Frank:

Again many, many thank yous for posting that link to the announcement. I spent about 7 hours yesterday faxing it to every appraiser I could think of and a few lenders. Today I am looking for more fax numbers to send it to. Monday I am delivering it to all the real estate offices in town. I posted over on the AI forum and I will say the same here and I will be posting the same on the NAIFA chat rooms:

Every appraiser's assignment from now own-----fax, talk, provide copies of that announcement to every appraiser, lender, appraisal management company you can find. Hand it out at your next meeting of appraisers or realtors or mortgage people. Stand on a street corner and hand it out to passer bys!!!

 

[Callan]

When will someone provide us with a licensing board to report Loan Officers and Agents about pressures and threats when the "value" does not come in. Oh thats right Loan officers are not licensed and have nothing to lose when they threaten the ability to put food on our table.

Hi All, *LINK FIXED*

Just received a copy of an announcement sent by Fannie Mae to Lenders yesterday.

You will have to decide for yourselves, but I believe it is filled with good news. Page 3 is particularly interesting. Also there is some good clarification of Updating an Appraisal Report on Page 5.

Six Page PDF file

*FANNIE ANNOUNCEMENT*

 

[Francois K. Gregoire]

When will someone provide us with a licensing board to report Loan Officers and Agents about pressures and threats when the "value" does not come in. Oh thats right Loan officers are not licensed and have nothing to lose when they threaten the ability to put food on our table.

Callan,

Some states do have licensing and regulatory boards for Mortgage Brokers and Mortgage Bankers. Many others have statutes regulating their actions and behavior. It's just a matter of doing some research and knowing more about the law regulating their actions than they do.

You might also take a closer look at the Fannie Mae Announcement. The situation you mention is addressed.

A lender must not attempt to unduly influence an appraiser's valuation analysis, determination of the opinion of value for the property, description of the property, or reporting of market conditions. From
time to time, appraisers report that they are told (directly or indirectly) that future assignments might not be forthcoming unless they report a predetermined value (or direction in value that favors the cause of the client or any related party) or remove or change information in the appraisal report that might be considered detrimental to a specific property. Such attempts to influence the appraiser are clearly unacceptable. However, this does not mean that a lender cannot question the appraiser's findings or provide factual information (such as comparable market data) to the appraiser in support of a proposed
mortgage transaction.

When a lender delivers a mortgage to us, it warrants that it knows of nothing involving the mortgage that reasonably can be expected to cause the mortgage to become delinquent or to adversely affect the reported value of the security property. The lender must take appropriate measures to assure that no actions -- such as pressuring appraisers to arrive at predetermined values and/or indicators of market condition -- taken by its employees, agents, or third-party originators compromise the warranties it makes to us.

To assure that it can make our required warranties, a lender must take appropriate measures to assure that its quality assurance procedures adequately address our mortgage eligibility, underwriting, and property appraisal standards.

The actions you describe (and which many of us endure) appear to be contrary to existing Fannie Mae Policy and violate the terms of the seeling agreement between the Originator and Fannie. Wouldn't you agree?