7900 Westpark Drive, Suite T-309, McLean, VA 22102   (703) 342-5900   www.namb.org

 

December 24, 2008                                                                                               Contact: Jon Otto  

For Immediate Release                                                                                            (703) 342-5851   

 

 

New York Attorney General, GSEs Release Revised Appraisal Agreement

 

McLean, V.A. – December 24, 2008 – The National Association of Mortgage Brokers (NAMB) today announced its disappointment with New York Attorney General Andrew Cuomo, Government Sponsored Enterprises Fannie Mae and Freddie Mac (GSEs) and the Federal Housing Finance Agency (FHFA) for issuing its revised Agreement on the Home Valuation Code of Conduct (HVCC) for appraisals. This agreement, in response to an initial investigation into business practices conducted between Washington Mutual and appraisal management company E-AppraiserIT, once again fails to address the appraiser fraud problem. NAMB today issued the following statement from NAMB President Marc Savitt:

 

“This agreement amounts to a de facto regulatory action which avoids the appropriate process. The law provides for a process to implement regulatory and policy changes such as those contemplated and specified in this agreement.  

 

This agreement will increase costs to consumers and remove thousands of small business competitors from the marketplace. This will create a severe disadvantage to small business mortgage brokers, and prevent them from engaging competitively in the mortgage marketplace.

 

The Attorney General and GSEs disregarded many letters submitted by industry associations citing numerous laws and regulations already in place and for failing to make the necessary revisions in the new agreement to accurately address the problem of appraiser fraud. The solution to appraiser fraud is to hold responsible those that commit the fraudulent acts: appraisers. Regulators have failed to reprimand appraisers committing similar acts to those committed during the Savings and Loan Crisis, and instead held small business mortgage brokers accountable.

 

As always, we are ready to work with these agencies to achieve the objective of eliminating appraiser fraud without disrupting the marketplace or hurting consumers. As it stands now, the National Association of Mortgage Brokers intends to consult with our legal advisors and to take appropriate legal action if necessary.”

 

For a copy of the revised agreement, please click here.

 

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The National Association of Mortgage Brokers is the voice of the mortgage broker industry, representing the interests of mortgage brokers and homebuyers since 1973. The Association is committed to promoting the highest degree of professionalism and ethical standards for its members. In addition to mandating members adhere to a professional code of ethics, NAMB provides mortgage brokers with professional education opportunities, and offers rigorous certification programs to recognize members with the highest levels of professional knowledge and education.