According to the NY Times, NYS A.G. Cuomo has gotten Fannie Mae and Freddie Mac to agree that independent or outside appraisal firms will be used on the mortgages they buy in the future.
This is a big deal for some mortgage brokers that have used their in-house appraisers to work on the loans they originated. It could force these firms, like Countrywide Financial, to spin off their appraisal units. Previously, many mortgage brokers used their own appraisers on deals. The National Association of Mortgage Brokers claims this development will hamper their competitiveness.
