The Bellyaching Continues About NY AG Appraisal Agreement/Legal Settlement With Fannie, Freddie, OFHEO

Bloomberg News reports:

• Fannie Mae and Freddie Mac's agreement to restrict banks from using in-house appraisal companies may violate federal law, U.S. Comptroller of the Currency John C. Dugan said in a letter to the companies' supervisor.

• The two companies, which own or guarantee about 45 percent of the $12 trillion in U.S. home loans, made a deal in March with New York Attorney General Andrew Cuomo and the Office of Federal Housing Enterprise Oversight to stop buying mortgages from lenders that use in-house home appraisals for their loans.

• The agreement and new appraisal code "violate or conflict with federal law in fundamental respects" and should be withdrawn, Dugan said in a letter to Ofheo Director James Lockhart.

For more, see Fannie, Freddie Appraisal Agreement May Violate Law.

See also, The Associated Press (story appearing in The New York Times): Regulator Criticizes Appraisal Agreement.

Go here for other posts on the now-terminated investigation by NY AG Cuomo of Fannie Mae and Freddie Mac.