Cuomo sees ‘rampant appraisal fraud’
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News item from the L.A. Times: ‘Mortgage giants Fannie Mae and Freddie Mac agreed today to revamp their home-appraisal standards to eliminate the type of alleged fraud that contributed to the nationwide housing bubble.’
‘In a legal agreement with New York Atty. Gen. Andrew Cuomo, the two companies said they would only purchase home loans from banks that follow rigid new rules setting out how home appraisals can be conducted.’
Cuomo: ‘Today’s agreement with Fannie Mae and Freddie Mac begins to set right what had gone so horribly wrong in the mortgage industry -- rampant appraisal fraud.’
Just asking: If there was ‘rampant appraisal fraud,’ why aren’t we hearing about a crackdown on appraisal fraud in Los Angeles? Is it because L.A., home of the largest surviving housing bubble in America, was an island of honesty in a sea of fraud? You tell me.
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