Wall Street Journal (05/14/08) P. C12; Timiraos, Nick; Hudson, Kris; Hagerty, James R.
Sen. Elizabeth Dole, R-N.C., is expected to propose an amendment to a bill that would beef up regulatory oversight of Fannie Mae and Freddie Mac, calling for the government-sponsored enterprises' new regulator to create new appraisal standards for the mortgages they buy or guarantee. The amendment would overrule a code of conduct created by New York Attorney General Andrew Cuomo that would prevent mortgage brokers and loan officers from selecting appraisers and prohibit lenders from using valuations by in-house or affiliated appraisers. Observers say Fannie Mae and Freddie Mac agreed to the code of conduct to avoid litigation and that it likely would become a national standard given that the GSEs purchase or guarantee most mortgages.
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