In its ongoing effort to flag defective loans long before they default, Fannie Mae is taking aim at the home appraisal industry.

The government-sponsored enterprise is keeping a virtual blacklist of appraisers that it views as shady and is warning banks and mortgage lenders to be careful about doing business with them. All loans with work done by appraisers on the list will be subject to extra scrutiny before Fannie buys them from lenders and could be rejected outright, Fannie says.

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