Story by Jacob Passy
A federal watchdog agency is investigating ways to modernize the process used to determine how much a home is worth.
The Federal Housing Finance Agency, which oversees mortgage giants Fannie Mae (FNMA, -6.36%) and Freddie Mac (FMCC, -6.18%), issued a “request for input” on the policies and practices surrounding home appraisals. The regulator is seeking input on a range of proposals, including relaxing key standards that Fannie and Freddie require lenders to abide by for the loans they back.
“Modernizing the appraisal process has the potential to create a more streamlined and accurate collateral valuation process,” FHFA Director Mark Calabria said in announcing the request for information. “But if modernization is not properly adopted, it could have negative unintended consequences.”