StreetLinks National Appraisal Services LLC has updated its "Warranty of Appraisal Quality" to conform to Fannie Mae's new appraisal regulations.
The secondary market agency in a June 30th announcement specified lender responsibility and liability regarding appraiser selection criteria, even if an appraisal management company like StreetLinks is used.
Steve Haslam, chief executive of the Indianapolis-based AMC, said "Fannie has officially placed the burden on the lender for compliance with best practice appraisal assignment. As such, lenders should carefully scrutinize the appraiser selection and assignment methodology used by their AMC or in-house appraisal management solutions."
Critics of the Home Valuation Code of Conduct, the legal settlement Fannie Mae entered into with New York Attorney General Andrew Cuomo, have complained that AMCs are giving assignments to appraisers who have to travel long distances and are not familiar with the neighborhoods they are being asked to value properties in.
