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 May 05, 2009

Moratorium on Appraisal Rules Sought by NAR and NAMB
Both the National Association of Mortgage Bankers (NAMB) and the National Association of Realtors (NAR) are lobbying hard to postpone the implementation of new Freddie Mac and Fannie Mae rules which govern real estate appraisals.
Scheduled to take effect May 1, the new rules, if implemented, would result in higher costs for borrowers. In a letter to the Federal Housing Finance Agency, the NAR argued that not enough time has elapsed to properly implement the changes. NAR seeks a one year moratorium on the new rules.

The new rules have been created in order to curb alleged collusion between appraisers and mortgage lenders to increase home values. Part of the new rules would require that mortgage brokers longer be able to order appraisals directly. Going forward, they would be required to a lending institution. Mortgage brokers argue that this new rule would make it difficult for them to be able to compete with lenders.

Michael Carrier, an associate with the Mortgage Brokers Association, (MBA) stated that borrowers who shop around for the best rate may be required to pay for more than one appraisal.