More On The New Appraisal Code

Fannie Mae and Freddie Mac are trying to defend their new appraisal rule, HVCC, by saying that appraisers must have experience in those geographical areas.  What they leave out is how conservative they are all being, how the comparables don’t take into account the condition of the property like they should, the costs involved, etc. 

 

 “The two government-backed mortgage investors told mortgage lenders that appraisers must have experience in the geographic areas where they get assignments. Brokers have complained recently about what they see as a growing number of appraisers traveling outside the areas they know best, resulting in less-accurate appraisals.

Fannie and Freddie also said the code doesn’t bar appraisers from talking with real-estate agents.”

http://online.wsj.com/article/SB124830543450973871.html#mod=todays_us_page_one