Cramdowns and refis won’t need appraisals

In November, the U.S. federal agencies which oversee the banking system proposed new guidelines for real estate appraisals. One would imagine that these guidelines would be in keeping with the new more stringent regulatory frame of mind the financial services sector. This is not the case.

In fact, the new proposal appears to entirely eliminate mandated written appraisals in connection with cramdowns, refis, and Fannie/Freddie loans. In fact, the new proposal appears to entirely eliminate mandated written appraisals in connection with cramdowns, refis, and Fannie/Freddie loans.