FHFA Looks at Appraisals
The Federal Housing Finance Agency is investigating ways to modernize the process used to determine how much a home is worth. They are seeking input on a range of proposals, including relaxing key standards that Fannie and Freddie require lenders to abide by for the loans they back. (Market Watch)
“Modernizing the appraisal process has the potential to create a more streamlined and accurate collateral valuation process,” FHFA Director Mark Calabria said in announcing the request for information. “But if modernization is not properly adopted, it could have negative unintended consequences.”
Indeed, while the proposed changes could lead to time- and cost-savings for consumers, experts told MarketWatch that taking the wrong steps could disadvantage consumers, particularly people of color.