More Bellyaching Over NY AG's Appraisal Code; Differing Perspectives Of Those With Significant Economic Interests "Not Surprising," Says Cuomo

In Albany, New York, The Albany Times Union reports:

• New York Attorney General Andrew Cuomo is rocking the home appraisal industry -- and not just in his home state. Cuomo has successfully pushed a "home valuation code of conduct" that will apply nationally and could affect the price paid for real estate. Independent appraisers say it will affect them, too. "This is the straw that broke the camel's back," said Bob La Belle, owner of La Belle Appraisal Group in Clifton Park. "It's not economically feasible for me to stay in business anymore."

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• Cuomo trumpets the agreement as a triumph for consumers. Reaction from the banking and mortgage industries has been strongly negative. And earlier this month, the federal Office of Thrift Supervision said the process leading to the agreement was "flawed" because it did not allow for input from lenders or federal regulators.

• Groups like the American Bankers Association and the Mortgage Bankers Association have even accused Cuomo of a power grab that allows New York "to unlawfully exercise authority that resides exclusively in the federal government."

• Cuomo, though, said reaction to the code has been overwhelmingly positive, and says the reaction from industry was predictable. "The agreements with Fannie Mae and Freddie Mac ... are groundbreaking and require real structural change in the industry," Cuomo said in a statement. "So it is not surprising that current industry participants, many of whom have significant economic interests of their own at stake, have differing perspectives."

For more, see Appraiser: Cuomo plan for code is too costly (Effort to end inflated values for home loans also draws criticism from bankers, mortgage lenders).

Go here for other posts on the NY AG's appraisal code of conduct agreed to and accepted by Fannie Mae & Freddie Mac.