National Banks Supervisor Questions Fannie Mae and Freddie Mac Agreement
May 28, 2008
Washington, D.C–The regulator who monitors national banks spoke out against a Fannie Mae and Freddie Mac agreement to cease buying mortgages that use lender-selected appraisers, the Boston Globe reported Wednesday.John Dugan, the US comptroller of the currency, has asked that the agreement–which was designed to protect buyers from unduly inflated home prices–be withdrawn because he…
Washington, D.C–The regulator who monitors national banks spoke out against a Fannie Mae and Freddie Mac agreement to cease buying mortgages that use lender-selected appraisers, the Boston Globe reported Wednesday.John Dugan, the US comptroller of the currency, has asked that the agreement–which was designed to protect buyers from unduly inflated home prices–be withdrawn because he feels it could hurt the mortgage industry by raising lenders’ mortgage issuing costs. The agreement was part of a negotiation between the two companies and New York Attorney General Andrew Cuomo.The Office of Thrift Supervision also has criticized the agreement, which is scheduled to take effect next year, according to the Globe.
