The American Bankers Association today joined seven other associations to express support for the White House’s executive order promoting access to mortgage credit.
The joint letter urges the Federal Housing Finance Agency to expand the use of alternative valuation methodologies that have occurred over the last few years. Specifically, the associations ask FHFA to expand the use of “hybrid” valuation methodologies that leverage data and technology to complement and enhance the physical review of the property, by allowing borrowers to photograph the interior and exterior of the property. They also asked for standards to be set in accordance with a set of specified requirements, and the ability to submit photos using a secure portal to prevent tampering and fraud.
“Our organizations agree that President Trump’s EO presents an opportunity for appraisal modernization to improve the quality, efficiency and integrity of residential property valuation,” the associations said. “As a result of the dominant role that Fannie Mae and Freddie Mac (the GSEs) play in the mortgage marketplace, and the expanded use of alternative valuation methodologies that has occurred over the last few years, FHFA and the GSEs are in an optimal position to contribute to the transformation of appraisal policies, practices, and processes.”
The associations also proposed raising the value acceptance limit proportionally to properties valued at $2 million and recommended reviewing the value acceptance limits annually, when GSEs update loan limits.
