Freddie and Fannie’s Proposed Fix – Flawed
17 April 2008
No sooner that the proposal from Freddie and Fannie have hit the Mortgage crisis and after it was hailed to be the next best thing to what had happened to the sub-prime lending industry, experts from all sides are already crying foul even before they have been put in place. Why, the people from the Mortgage Banker’s Association say that the proposed code of conduct they have already made with the federal government is flawed and sketchy at best. The proposed move places Federal agencies to oversee government-sponsored industries is quite difficult and would make already tedious process harder. Lenders are barred from relying on in-house appraisals for those that are done by affiliated businesses. The whole deal would create more haze than clear up the process and many more problems would result from them as previously thought. The problem is that Freddie and Fannie have already signed the deal that is set to go into force this coming year which are only a few months off. They did not consult the industry nor it’s leaders on the move they were going to make and that they acted on their own accord without any representatives of the affected industries. All this to shield appraisers from the pressures of industry which sometimes tries to inflate home values.
Sorry, the comment form is closed at this time.
