FNMA Property Data Collectors Program Violates WV Law
The Fannie Mae Property Data Collectors program seems to have run afoul of West Virginia law. This program allows for the collection of data related to real estate appraisals by unlicensed third-party data collectors, which is in direct violation of article 38 of the state’s Real Estate Appraiser Licensing and Certification Act. The act specifically states that only a casual or drive-by inspection can be performed when it comes to consumer loans secured by real estate, and no opinion can be rendered as to its value nor any fee charged for such an inspection.
Fannie Mae has put itself in a difficult position here due to its negligence towards following state laws governing appraisal activities – something that should have been taken into account prior launching this initiative across multiple states with varying regulations on such matters. Not only does this create potential legal issues for Fannie Mae but also puts borrowers at risk if inaccurate information is collected from their properties due to the lack of qualified personnel performing these inspections under applicable laws and standards set forth by individual states like West Virginia.
It’s important that companies operating within different jurisdictions are aware about local regulation before engaging in business activities – especially those involving sensitive areas like property valuation – as not doing so could lead them down an expensive road filled with fines, penalties or even criminal prosecution depending on severity level breach committed against given statute.
Fannie Mae should take steps immediately to ensure that its Property Data Collectors are compliant with all relevant state laws if they wish to continue offering this service without facing legal repercussions.
While other states may have similar statutes governing appraisals, it is important for all appraisers to familiarize themselves with their own regulations before engaging in any appraisal activity so they do not run afoul of local laws. If you know of similar statutes in other states, please comment below.
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