New Appraisal Rules Will Slow Down Housing Recovery
Fannie Mae and Freddie Mac, which purchase about 60 percent of all home loans originated in the United States, have agreed to the establishment of the "New Home Valuation Protection Code," which creates requirements governing appraisal selection, solicitation, compensation, conflicts of interest and corporate independence.
Once again, what sounds good on its surface is just another wrench in clearing out 10 months of housing inventory. What the new rules mean is no more "drive by" appraisals and no more market data from county assessor's offices.
If the appraisal is lower than the asking price, a bank will refuse to issue a loan. Yet the "objective" appraisal will not influence property taxes in any way..
