Freddie Mac
329) Fannie/Freddie/Andrew Cuomo Agreement
05/29/08
Hello Mr. Harrison,
What is your opinion regarding the Fannie/Freddie/Andrew Cuomo activity?
Anna Richardson richardson313808@bellsouth.net
Dear Anna,
The editorial in the current Spring 2008 issue of Real Estate Valuation Magazine - online at www.revmag.com - expresses in detail how I feel.
H2
What is your opinion regarding the Fannie/Freddie/Andrew Cuomo activity?
Anna Richardson richardson313808@bellsouth.net
Dear Anna,
The editorial in the current Spring 2008 issue of Real Estate Valuation Magazine - online at www.revmag.com - expresses in detail how I feel.
H2
309) Fannie/Freddie Changes
05/05/08
Hi Henry,
I've just had a moment to stop and read your recent questions and answers - which I always look forward to. I'm actually writing to express my frustration over the results that the Fannie/Freddie changes have bestowed upon us to date. Our largest client (which we have worked with for many years) just switched to ServiceLink, an appraisal management company, to avoid any appearance of lender pressure.....and what a horror it has become. We are in a resort area in southwest Florida and have enjoyed reasonable appraisal fees over the years. We were just contacted by this management company only to be informed that their #1 rated appraiser in one of our counties that we provide service to is being paid $170 per report and the highest fee paid is $225. Do you think that they are going to draw the "top of the line" appraisers at these fees?
Prior to approval, they feel the need to check your criminal background as well to explore your credit status. We are fingerprinted here in Florida, so they would know if we were criminals and our credit has nothing to do with an appraisal report. I hope that helps those appraisers that wonder if our industry will be damaged or destroyed. There's no doubt in my mind....as we are already living the nightmare.
Thanks for letting me vent. I've been in this business for almost twenty years and this is the hardest hit we've come across yet. What do you think about this whole mess?
Carol M. Krakoff krakoff@mindspring.com
Dear Carol,
I agree with much of what you say. See my editorial in the new SPRING 2008 issue of REV Magazine. It will be posted on our website shortly -- probably by the time you read this online. [Click here: Henry's Editorial: www.revmag.com/spring2008/04.html )
Many lenders are considering changing to management companies and this is certainly going to affect many appraisers. There is no simple answer to this problem.
H2
I've just had a moment to stop and read your recent questions and answers - which I always look forward to. I'm actually writing to express my frustration over the results that the Fannie/Freddie changes have bestowed upon us to date. Our largest client (which we have worked with for many years) just switched to ServiceLink, an appraisal management company, to avoid any appearance of lender pressure.....and what a horror it has become. We are in a resort area in southwest Florida and have enjoyed reasonable appraisal fees over the years. We were just contacted by this management company only to be informed that their #1 rated appraiser in one of our counties that we provide service to is being paid $170 per report and the highest fee paid is $225. Do you think that they are going to draw the "top of the line" appraisers at these fees?
Prior to approval, they feel the need to check your criminal background as well to explore your credit status. We are fingerprinted here in Florida, so they would know if we were criminals and our credit has nothing to do with an appraisal report. I hope that helps those appraisers that wonder if our industry will be damaged or destroyed. There's no doubt in my mind....as we are already living the nightmare.
Thanks for letting me vent. I've been in this business for almost twenty years and this is the hardest hit we've come across yet. What do you think about this whole mess?
Carol M. Krakoff krakoff@mindspring.com
Dear Carol,
I agree with much of what you say. See my editorial in the new SPRING 2008 issue of REV Magazine. It will be posted on our website shortly -- probably by the time you read this online. [Click here: Henry's Editorial: www.revmag.com/spring2008/04.html )
Many lenders are considering changing to management companies and this is certainly going to affect many appraisers. There is no simple answer to this problem.
H2
292) Agricultural Property
04/05/08
Dear Henry,
Regarding the question on agricultural properties, I believe the regulations are in regard to use and not zoning. In our market, many properties have some additional acreage, are in an AG zone, are not farms and are accepted by Fannie and Freddie.
Regards,
James T Scholl jamestscholl@yahoo.com
Dear James,
It is not really the appraiser's problem to determine if a mortgage is eligible for purchase by Fannie Mae or Freddie Mac. However, when a lot is large and the zoning is agricultural, it is helpful to your client to make it very clear how the property is being used and what the highest and best use is.
H2
Regarding the question on agricultural properties, I believe the regulations are in regard to use and not zoning. In our market, many properties have some additional acreage, are in an AG zone, are not farms and are accepted by Fannie and Freddie.
Regards,
James T Scholl jamestscholl@yahoo.com
Dear James,
It is not really the appraiser's problem to determine if a mortgage is eligible for purchase by Fannie Mae or Freddie Mac. However, when a lot is large and the zoning is agricultural, it is helpful to your client to make it very clear how the property is being used and what the highest and best use is.
H2
282) Fannie & Freddie's NEW RULES
03/26/08
Dear Henry,
What is your opinion on the new agreement reached between OFHEO, Fannie Mae, Freddy Mac and Mr. Cuomo, the NY State Attorney General? Will this much needed agreement equal better fees and more work? Is this the end of AMCs? Will other states follow?
Richard Gomez RG67@bellsouth.net
- - -
Dear Henry,
It this new Code of Conduct just more of the same "pass the problem on to the Appraisers?" I see no penalities for the lenders (for coercion)....
Dave Hanson Hanson@boscgi0604.eigbox.net
- - -
Dear Henry,
I am confused. Is it true that Fannie Mae and Freddie Mac will have to obtain appraisals from independent fee aprpaisers, not in-house appraisers or appraisers working for AMC's? Is this new agreement going to apply nationwide? Please clarify.
Thanks,
Rick Daniel rickdan@erols.com
- - -
Hi Henry!
What is your opinion of the new developments with Fannie Mae & Freddie Mac regarding the ordering of appraisals in 2009? Many of my colleagues feel that this is the end of their profession because the new requirements will force us to seek out AMCs to belong to...in hopes of getting some appraisals now and then. Also, to go along with having to seek out AMC's or try and get on lenders lists, do you think we face having our fees slashed again? It costs a small fortune being an appraiser what with having to belong to an MLS board, upgrade software, CE, licensing...the list goes on and on. Please state your opinion of these new developments.
Sincerely,
Mary karmtra@gmail.com
- - -
Dear Henry,
Just finished going through the new Fannie/Freddie guidelines. Appraising residential real estate in the Houston market for the last 32 years, I know that the "devil is in the details". Not all is as seems. What are the repercussions of this policy change for appraisers?
Thomas Ponce, MRA thomas@theponcegroup.com
- - -
Dear Friends,
As you can imagine, I have received many questions similar to the ones above. regarding the new Fannie/Freddie regulations. I think this agreement is a big step in the right direction but it is far from perfect. It is going to take some time to really understand all its implications.
Also there is a 45 day comment period which began on March 14th and goes through April 30th, after which the agreement may be changed.
Many appraisers tell me they are afraid they will lose work because of it, which is very possible. On the other hand, it may produce a lot more appraisal business. It seems to be the intent of the agreement to stop lenders and their representatives from putting pressure on appraisers to "make the number."
So far, based on the mail that I receive, little that has been tried in the past has worked very well. Maybe it will be different this time. It is not at all clear to me how the new proposed national complaint investigating agency that will be created as a result of this agreement, will work. What puzzles me is how this function, which is in the hands of the 50 state appraisal commissions, is going to be taken over by a new organization without a change in Federal legislation.
I have received many comments that this will be the end of AMCs. I find this hard to believe. Others have asked if this will end Fannie Mae's Desktop Underwriting program. I don't know. I am very interested to hear from appraisers who can add to our understanding of how they think this will all work.
Here are some of the most frequently asked questions on this subject and my "take" on the situation:
Can the lender use an in house appraiser to make a mortgage appraisal? No, but they can use them to review appraisals and a variety of other functions.
Can the lender use an appraisal management company? Yes - as long as it is independent of the lender as described above.
Can AVMs be used? Nothing has changed in this regard.
Who is responsible for paying the appraiser? The lender or the appraisal management company.
Can settlement service companies order appraisals? No.
Who can make appraisals? The settlement does not address this; therefore I assume it is up to the state and the AQB as before.
When will this go into effect? Not later than January 1, 2009. It is possible that Fannie Mae and Freddie Mac will issue regulations sooner.
Is this all cut in stone? No - there is a 45 day comment period currently in effect (March 14th - April 30th), after which anything can be changed. REV Magazine is sending out an email later today (March 28th) telling you when and how you can comment.
H2
What is your opinion on the new agreement reached between OFHEO, Fannie Mae, Freddy Mac and Mr. Cuomo, the NY State Attorney General? Will this much needed agreement equal better fees and more work? Is this the end of AMCs? Will other states follow?
Richard Gomez RG67@bellsouth.net
- - -
Dear Henry,
It this new Code of Conduct just more of the same "pass the problem on to the Appraisers?" I see no penalities for the lenders (for coercion)....
Dave Hanson Hanson@boscgi0604.eigbox.net
- - -
Dear Henry,
I am confused. Is it true that Fannie Mae and Freddie Mac will have to obtain appraisals from independent fee aprpaisers, not in-house appraisers or appraisers working for AMC's? Is this new agreement going to apply nationwide? Please clarify.
Thanks,
Rick Daniel rickdan@erols.com
- - -
Hi Henry!
What is your opinion of the new developments with Fannie Mae & Freddie Mac regarding the ordering of appraisals in 2009? Many of my colleagues feel that this is the end of their profession because the new requirements will force us to seek out AMCs to belong to...in hopes of getting some appraisals now and then. Also, to go along with having to seek out AMC's or try and get on lenders lists, do you think we face having our fees slashed again? It costs a small fortune being an appraiser what with having to belong to an MLS board, upgrade software, CE, licensing...the list goes on and on. Please state your opinion of these new developments.
Sincerely,
Mary karmtra@gmail.com
- - -
Dear Henry,
Just finished going through the new Fannie/Freddie guidelines. Appraising residential real estate in the Houston market for the last 32 years, I know that the "devil is in the details". Not all is as seems. What are the repercussions of this policy change for appraisers?
Thomas Ponce, MRA thomas@theponcegroup.com
- - -
Dear Friends,
As you can imagine, I have received many questions similar to the ones above. regarding the new Fannie/Freddie regulations. I think this agreement is a big step in the right direction but it is far from perfect. It is going to take some time to really understand all its implications.
Also there is a 45 day comment period which began on March 14th and goes through April 30th, after which the agreement may be changed.
Many appraisers tell me they are afraid they will lose work because of it, which is very possible. On the other hand, it may produce a lot more appraisal business. It seems to be the intent of the agreement to stop lenders and their representatives from putting pressure on appraisers to "make the number."
So far, based on the mail that I receive, little that has been tried in the past has worked very well. Maybe it will be different this time. It is not at all clear to me how the new proposed national complaint investigating agency that will be created as a result of this agreement, will work. What puzzles me is how this function, which is in the hands of the 50 state appraisal commissions, is going to be taken over by a new organization without a change in Federal legislation.
I have received many comments that this will be the end of AMCs. I find this hard to believe. Others have asked if this will end Fannie Mae's Desktop Underwriting program. I don't know. I am very interested to hear from appraisers who can add to our understanding of how they think this will all work.
Here are some of the most frequently asked questions on this subject and my "take" on the situation:
Can the lender use an in house appraiser to make a mortgage appraisal? No, but they can use them to review appraisals and a variety of other functions.
Can the lender use an appraisal management company? Yes - as long as it is independent of the lender as described above.
Can AVMs be used? Nothing has changed in this regard.
Who is responsible for paying the appraiser? The lender or the appraisal management company.
Can settlement service companies order appraisals? No.
Who can make appraisals? The settlement does not address this; therefore I assume it is up to the state and the AQB as before.
When will this go into effect? Not later than January 1, 2009. It is possible that Fannie Mae and Freddie Mac will issue regulations sooner.
Is this all cut in stone? No - there is a 45 day comment period currently in effect (March 14th - April 30th), after which anything can be changed. REV Magazine is sending out an email later today (March 28th) telling you when and how you can comment.
H2
260) Agricultural Property & Freddie Mac
03/05/08
Dear Henry,
My subject property is zoned Agricultural/conservation (7 acres). Would this be a problem for sale to Freddie Mac?
Name Withheld by Request
Dear Friend,
Yes. Agricultural properties are a specific exclusion from Fannie Mae's or Freddie Mac's portfolio acquisitions.
H2
My subject property is zoned Agricultural/conservation (7 acres). Would this be a problem for sale to Freddie Mac?
Name Withheld by Request
Dear Friend,
Yes. Agricultural properties are a specific exclusion from Fannie Mae's or Freddie Mac's portfolio acquisitions.
H2