Subprime Legal, Take 2: Is Cuomos Appraisal Fix Destined for Court?
This is a discussion on Subprime Legal, Take 2: Is Cuomos Appraisal Fix Destined for Court? within the Government & Administrative Law forum, part of the OTHER LEGAL ISSUES category; Will Andrew Cuomos appraisal code of conduct the set of guidelines for mortgage lenders to follow to avoid inflated ...
![]() |
|
|
Thread Tools | Search this Thread | Rate Thread | Display Modes |
|
|
#1 |
|
News
Join Date: Mar 2008
Posts: 1,438
|
![]() Will Andrew Cuomos appraisal code of conduct the set of guidelines for mortgage lenders to follow to avoid inflated home appraisals ever see the light of day? If it does, reports the WSJs James Hagerty today, it may well see a whole lot of litigation first. Heres the backstory: Earlier this year, Cuomo campaigned hard against inflated home appraisals. He threatened to sue government-sponsored mortgage investors Fannie Mae and Freddie Mac for allegedly failing to ensure that appraisers were shielded from pressure to pad their estimates. In March, Fannie and Freddie, eager to avoid a legal battle, agreed with Cuomo on a so-called appraisal code of conduct, which is due to take effect next Jan. 1. The agreement was backed by Fannie and Freddies regulator, the Office of Federal Housing Enterprise Oversight (Ofheo). But not everyones happy with the plan. Among other things, critics, including some federal regulators and mortgage-industry groups, say the code could raise costs for consumers and cause unnecessary disruption in the appraisal business. According to todays story, unless Cuomo works with the industry to revise the code, somebody out there is likely to file litigation, says Steve OConnor, a senior vice president at the Mortgage Bankers Association. Roy DeLoach, executive vice president of the National Association of Mortgage Brokers, says legal action against the planned code is one option his trade group will consider. And what would that litigation look like? Some argue that the code of conduct is tantamount to federal regulation and so is subject to the Administrative Procedures Act. The act requires federal agencies seeking to make new rules to first publish a proposal and solicit public comments on it. But in an interview, Mr. Cuomo said he was totally confident in the legal process used. Both he and Ofheos director, James Lockhart, promised to consider suggestions for changes in the code. Last edited by top_admin; May 8th, 2008 at 11:31 AM. |
|
|
|
![]() |
| Bookmark & Share |
| Thread Tools | Search this Thread |
| Display Modes | Rate This Thread |
|
|
|
||||
| Thread | Thread Starter | Forum | Replies | Last Post |
| Cuomos Settlement Over Allegedly Discriminatory Mortgage Fees | WSJ_law_blog | Law News | 0 | Jan 6th, 2009 04:30 PM |
| Preemption Means Latka Wont Have To Fix Yellow Hybrids Yet | WSJ_law_blog | Law News | 0 | Oct 31st, 2008 02:10 PM |
| Subprime Legal: Feds and States Probe Wachovia, IndyMac | WSJ_law_blog | Law News | 0 | Jul 17th, 2008 12:10 PM |
| Subprime Legal: A Look at Who’s Repping Former Credit Suisse Brokers | WSJ_law_blog | Law News | 0 | Jul 10th, 2008 08:40 PM |
| Subprime Legal: Bond Rating Firms Close to Settlement With Cuomo | WSJ_law_blog | Law News | 0 | Jun 3rd, 2008 03:50 PM |
Doing business in China? Need legal help or advice? Contact our international and Chinese lawyers 24 hours! WORLD Law Direct offers an experienced team of American and Chinese legal professionals.
All times are GMT -5. The time now is 10:45 PM.









Linear Mode

