New Fannie Mae Program Could Hurt Housing

January 13, 2015

The new Collateral Underwriter program from Fannie Mae could potentially cause home sale closings to cost more money and move at a slower pace according to appraisers, Housing Wire reports.

 

The program may also cause deals to fall through if appraised values for a property are lower than what the participating parties previously agreed to in a contract. Beginning Jan. 26, mortgage lenders will have access to proprietary home valuation databases in order to look at the accuracy or and risks posed by a home that were submitted by appraisers. Additionally, the program can highlight potential errors made by an appraiser while also providing up to 20 alternative comps for a property.


Read more

Comments

expand_less