Almost makes you wonder how many AVMs don’t make the number that works for the “deal”.

I’m not sure if you mean GSEs policies that result in a non market value indication or something else.

The appraiser (whoever that may be) opine as to market value. At the present time I don’t know of any cases where FNMA or Freddie cut value on their own, though they used to force buy backs if post purchase audits showed appraisal problems that could not be resolved. Alternatively they could force renegotiation of loan pricing.

I suspect that with CU, they will more pro actively second guess value  opinions… just as they now rate appraisers behind the scenes using CU. Being off the mark from their phony CU program COULD result in appraisers being placed on do not use, or limited use watch lists. Lists that FNMA ONLY makes available to lenders and their AMC agents.

Makes me wonder how that conforms to Dodd Frank. Are we supposed to ‘trust’ that FNMA notifies appraisers and gives them an opportunity to refute adverse ratings based on specific scoring issues?

Congressman Hensarling is right. The GSEs need to be cut loose from federal backstopping… and even then, they need to be required to make negative data about appraisers known to the appraiser in such a way that a fair rebuttal may be made. Even collection agencies have to give an opportunity for consumers to respond or dispute debt. Why should FNMA be permitted to libel appraisers?

Shades of 1984, and Big Brother, the book I mean. Wow was Orwell on the mark with a lot of things in this novel.

Now can anyone tell me what the recourse is if Fannie or Freddie decide your real estate is worth $X and you disagree? Or is there no recourse, and the owners will live with what a government managed enterprise tells them their property is worth?

How are we leveling playing fields by constantly creating a second set of rules for “special” people?

Perhaps a re-reading of Animal Farm should be mandatory today.