Fannie Mae Bullies Lenders, Ensnares Appraisers in farcical probes

Abstract

Fannie is generating automated appraisals similar to Zillow's ‘Zestimates’ and using them to undermine appraised values in loans it wants to offload. Fannie’s automated system then sends unsigned boilerplate complaints to state appraiser licensing boards – a scorched-earth tactic that requires them to spend years clearing their names in the often baseless complaints. A regulator in Ohio was receiving about 40 new complaints. This has a very good chance to disrupt the appraisal industry. Fannie reportedly cites the ongoing investigations as further evidence.