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HVCC makes cash buyers king

Appraisal rules disadvantage many who need financing

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Ever since May 1, 2009, when Fannie Mae's new appraisal guidelines for home mortgages went into effect, buyers, sellers, real estate agents and loan originators have complained bitterly about the new process. It's inefficient, often inaccurate and time-consuming. In some cases, it could be contributing to lower home prices. The new guidelines require lenders to select appraisers impartially. To comply, many large lenders hire appraisers from a third-party appraisal service company. The intent of the new guidelines was to keep loan originators from exerting pressure on appraisers. However, a consequence of the new process is that some appraisals aren't always based on the best, most accurate information. This can result in an appraised value that is lower than the purchase price. Some buyers may be forced to go elsewhere for a loan and pay for another appraisal. Rather than saving buyers money, buyers can pay as much as double what they would have paid before the guidelines ...