GSEs Still Finding Problems with Home Appraisals
to place artificially high values on properties, which helped increase home prices.
Murphy’s comments followed similar remarks from an official at the Office of the Comptroller of the Currency, who that same day told conference attendees that banks have been lax in their oversight of appraisers, American Banker reported.
Murphy told conference attendees that Fannie will give guidance to lenders next month regarding ways to decrease appraisal conflicts.
“We want accurate data and accurate property values,” Murphy said, American Banker reported.”For years, no one was looking at appraisals. But now we can see things. We want to make sure a property meets adequate appraisal requirements and that the appraisal accurately reflects market value.”
In 2010, the GSEs established the Uniform Mortgage Data Program to provide standard requirements for appraisal and loan data. Mortgage lenders have to provide information via an online portal so the GSEs can identify issues and reject them prior to origination.
Fannie and Freddie have been telling lenders about the appraisal problems that need to be fixed, according to Murphy.
“Just because a lender uses an appraisal management company, doesn’t relieve them of responsibility as a lender selling to us,” Murphy said, according to American Banker. “At the end of the day, the lender is responsible.”
Murphy added that Fannie has been regularly reporting these issues to state appraisal boards that license and oversee appraisers.
~ Source Appraisal Institute (AI)