Fannie Mae and Freddie Mac have signed a settlement with New York Attorney General Andrew Cuomo to implement new appraisal standards starting Jan. 1, 2009, that will bar lenders selling loans to the mortgage giants from using in-house appraisers or subsidiary appraisal firms. On brokered loans, lenders must certify in representations and warranties that the mortgage broker did not select the appraiser. Fannie and Freddie control over 60% of the mortgage market, and Mr. Cuomo said the settlement will transform appraisal practices by state and federally regulated banks that had pressured appraisers to inflate appraisals. "Now national banks have a clear choice: immediately adopt the new code and clean up fraud in the mortgage industry or stop doing business with Fannie Mae and Freddie Mac," Mr. Cuomo said. As the regulator of the government-sponsored enterprises, the Office of Federal Housing Enterprise Oversight also signed the settlement. "For the banking regulators, this is kind of tough to swallow because the practices that they had permitted are prohibited by this agreement," mortgage banking consultant Howard Glaser said.
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Elevated delinquency levels have not affected expected losses, however, due to home price appreciation, Fitch Ratings said.
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Retail lenders, including Beeline, Tomo Mortgage and Rocket Mortgage, settled with the department over infractions like submitting a false certification to not having the proper liquidity to be in the program.
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A pair of bills, one with bipartisan support, look to address the issues around heirs' property so these families can have clear title on their homes.
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The agreement, in which the real estate giant admits no wrongdoing, will cover around 70,000 agents.
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Doxo plans to fight the FTC complaint, which focuses broadly on consumer finance, but there are signs of confusion about the company's role in mortgages too.
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Members of the LGBTQ community were most likely to have experienced housing bias, according to a Zillow survey, which also found many people don't recognize how fair lending laws could help.
April 25