Appraisal changes will help us all.

New rules being considered due to the lawsuit by NY attorney general will get Fannie and Freddie to change appraisal rules. In summary the changes being considered are

1) Loan brokers will not be able to pick the appraiser.

2) In-house appraisal companies will not be allowed to be used.

3) New system to allow appraisers to advise when they are receiving undue pressure to appraise.

 Lets be honest part of the housing bubble was due to bad appraisals that the appraiser sold his soul to make a small fee on appraising the home and placing to high a value on the home. Causing the homeowner to overpay, mortgage companies to issue loans they couldn't sell when defaulted and generally ripping us all off.