Mortgage brokers say "banks are in control"

An industry lobbyist declares that new appraisal rules are "destroying the housing market" -- and blames the banks

By Andrew Leonard

Published June 29, 2009 3:02PM (EDT)

Marc Savitt, the president of the National Association of Mortgage Brokers is unhappy with the post I wrote last week on efforts by the mortgage broker industry to roll back new rules on how home appraisals are conducted.

Andrew Leonard's comments regarding the HVCC Appraisal Agreement were misleading and one sided.

Let's look at the true facts:

The NY Attorney General found evidence of fraud between a Federally chartered BANK and an appraisal management company. Yet the AG's solution to the problem of fraud, is to allow banks and Appraisal Management companies (AMC's), to control the process.

The AG is looking for appraisal independence. Then why does his HVCC allow banks to own up to 20 percent of the AMC's. How do you obtain "independence" when they are in a partnership?

Also, this code seriously increases consumer costs, while doing nothing to prevent fraud. The conservative estimate is 2.8 billion dollars.

Banks and AMC's benefit, while consumers and small business suffer.

Fannie and Freddie were investigated by the AG and immediately rolled over and signed the AG's agreement, so the investigation would stop. Don't you wonder why??

This agreement is destroying the housing market. Believe it, don't believe it, the fact remains this is the truth.

Appraisers have stated for years everyone tries to influence them. Banks, savings and loans, credit unions, lenders, brokers, realtors and the consumer. Why are just brokers barred from participating in the process? Because banks are in control.

This code is about 2 things. 1. Market share, not consumer protection. 2. Mr. Cuomo's next election.

Andrew, I suggest you be better informed about facts, before you write about a subject.

Thank you, Marc Savitt, President NAMB

Andrew Leonard

Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21.

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