Brokers: Tell Officials About Any Appraisal Code Concerns

The National Association of Mortgage Brokers is urging brokers, appraisals and consumers that have concerns about the new GSE appraisal code to register them with their congressmen, Fannie Mae, Freddie Mac and New York Attorney General Andrew Cuomo. The appraisal code that went into effect May 1 is forcing lenders to extend 30-day rate locks to 45 or 60 days because it takes so long to get an appraisal, according to NAMB executive vice president Roy DeLoach. "It is increasing costs for consumers and it is making transactions fall through," Mr. DeLoach said. In addition, appraisers working for appraisal management firms are unfamiliar with local market conditions and they are coming in with "depressed appraisals," he said. So NAMB is giving brokers, appraisers and consumers a channel to contact their congressmen and senators and air their complaints. NAMB has opposed the new code that Fannie, Freddie and their regulator devised under pressure from AG Cuomo. The code is designed to reduce conflicts of interest by prohibiting mortgage brokers and loan officers from selecting or influencing the choice of appraisers.