September 9, 2011
- An Inman News article by Jack Guttentag notes that late stage mortgage rejections are on the rise and some lenders are rejecting 50% or more of their mortgage applications after applicants have paid for an appraisal. A major factor is the decline in the quality of appraisals.
- RISMedia reports that real estate appraisers must consider the impact of local government’s comprehensive plans when producing appraisals. These governmental policies create both obstacles and incentives for development affecting the value of real estate.
- ICREA and FIABCI are pursuing the investigation of full integration of both organizations, forming one global organization for the real estate industry.
- Inman News noted that Fannie Mae and Freddie Mac’s regulator, Federal Housing Finance Agency is suing 17 financial institutions claiming some of the losses on private label MBS were due to misrepresentations and other improper actions. Financial analysts are warning that this could further stifle lending.
- On the same topic, Think Big Work Small found it interesting that the government pushed Bank of America to acquire Country Wide and Merrill Lynch and is now suing Country Wide (BOA) for $26.6 billion and Merrill Lynch for $25 billion, the combined total approximating the bail-out.