James Lockhart, director of the Office of Federal Housing Enterprise Oversight (OFHEO), talks to Liane Hansen about the agency's efforts to strengthen the independence of the appraisal process.
The OFHEO is working with New York State Attorney Andrew Cuomo, as well as Fannie Mae and Freddie Mac on the Home Valuation Code of Conduct, announced on March 3rd. Peter Barash, a lobbyist for the American Society of Appraisers, also discusses the issue.
"Accurate, independent appraisals are very important to ensuring the safety and soundness of Fannie Mae, Freddie Mac and the mortgage market," said Director Lockhart. "These agreements build upon existing federal and state laws and regulations to further strengthen the single-family home appraisal process."
"The agreements should help restore confidence in the mortgage market by enhancing underwriting practices, reducing mortgage fraud and making home valuations more reliable. I thank the Attorney General, Fannie Mae and Freddie Mac for their strong roles in this important effort."
Related NPR Story: RENEE MONTAGNE, host: "Government-backed lenders Fannie Mae and Freddie Mac have agreed to new rules for home appraisals. State prosecutors suspect that inflated appraisals may have fueled the housing crisis, as NPR’s Chris Arnold reports" - Fannie Mae, Freddie Mac Uphold New Loan Code
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