Call to Action - Speak out about Fannie Mae/Freddie Mac Initiative to Waive Appraisal Requirements
Freddie Mac & Fannie Mae have embarked on programs that waive appraisal requirements in first purchase and refinance transactions, using propriety models and generally unreliable data from MLSs and public records for collateral risk decision making. According to Fannie & Freddie, this is being done to lower costs and shorten closing time for consumers. While Fannie Mae has indicated the appraisal waivers will represent only 5 percent of their loan portfolio, Freddie Mac has thus far being unwilling to provide estimates, indicating that as much as one-third of their portfolio may be offered appraisal waivers. These programs will create unnecessary and unacceptable risks for taxpayers and homeowners, and they come at a time when markets are at all-time highs and when risk mitigation should be tantamount.
Let Congress hear from you if you are against the Freddie Mac and Fannie Mae waiver programs.
September 6, 2017
Industry Groups Attempt to Halt Fannie Mae and Freddie Mac from Implementing Appraisal Waivers
Today 35 industry groups, including the Columbia Society of Real Estate Appraisers, sent a letter to the Senate Committee on Banking, Housing and Urban Affairs, and to the House Committee on Financial Services, attempting to prevent the new appraisal waiver programs being implemented by Fannie Mae and Freddie Mac. The waivers are being allowed for loans where Fannie and Freddie feel there are sufficient loan-to-value ratios and enough in-house data to warrant Automated Valuation Models (AVMs) instead of appraisals.
The industry groups disagree. They feel that full appraisals are needed to safeguard taxpayers and homeowners in the home-buying process.
December 21, 2016
William Green Spearheads Effort to Stop Appraisal De Minimis Hike
Columbia Society National President William H. Green III, on behalf of the Columbia Society of Real Estate Appraisers and ten other appraiser groups who are Sponsors of The Appraisal Foundation, sent a letter to Janet Yellen, Chair of the Board of Governors of the Federal Reserve, in response to a recent statement from Chair Yellen addressing a possible change to appraisal requirements, specifically raising the de minimis from $250,000 to $500,000. The groups requested a meeting with Chair Yellen to discuss the detrimental effects of such an increase and are awaiting feedback from her group.
July 15, 2015
William Green Heads Up Appraiser
Regulatory Reform Group - Industry Leaders Endorse White Paper
Over the past year, a select group of professional appraisal organizations including Columbia Society have met to discuss what are jointly viewed as major problems facing our appraisal profession. The effort was headed up by Columbia Society's National President William H. Green III. The results of these discussions are outlined in an industry paper entitled Regulatory Issues Affecting the Real Estate Appraisal Profession, originally released April 30, 2015. The paper, along with a summary document and a letter to federal legislators, are linked below.