New home appraisal rules are under fire

It's by far the hottest controversy in real estate this summer, and it could directly affect the value of your house -- probably negatively -- by tens of thousands of dollars.

[Scout789]

Thank you Atty Gen. Andrew Cuomo - a former paid board member of an appraisal mgmt company - for forcing appraisals to be ordered through these companies. Way to keep the money in your contributor's pockets under the guise of protecting the consumer.

These appraisals are often done by trainees who are willing to work for practically free to earn enough hours to become certified. They are poorly trained - if trained at all.

Most AMCs are owned by the bank so they are nothing but a profit center for the big bank. Gov't resolve this? Not on your life...not with the big banks lobbying to keep this money maker going. This was not done to protect the consumer, but to fleece both the consumer and the appraiser.

[common sense]

I'm not asking this in a smartaleck "tone of voice". I really don't know and would like to.

When was this new "rule" about these appraisers put into effect? I understand it's a Fannie Mae/Freddie Mac thing. But who decided to do this and when? Was it before or after Obama became President? Does anyone here know?

Maybe it said, and I just didn't read the article quite carefully enough. But I couldn't find a date.

[Patrick in Chicago]

Boy can I relate. My partner and I purchased a foreclosed property well below the original price and went to refinance only to find that it appraised for $110k lower than our purchase price. The condo is in excellent condition. We were told that they only had foreclosures in the area and those could be used because our area was called repressed. It appears that again those that dealt the blow to the economy are benefiting. When will the madness stop so that normal citizens can come out on top.