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Freddie Mac Restricts use of BPO’s

From Appraiser News Online, Freddie Mac is restricting how lenders can use broker price opinions:

On March 31, Freddie Mac revised its Seller/Servicer Guide to strictly prohibit its lenders from using broker price opinions to value properties for mortgage purchases. Though Freddie had refrained from using BPOs as a matter of policy, the changes made to section 44.7 of its Selling Guide leave no room for loopholes.
The revised Selling Guide states that to be acceptable for a transaction, each mortgage file must contain one of the following reports:

- A written appraisal report
- A written inspection report
- A print-out of the Last Feedback Certificate with the Minimum Assessment Feedback of Form 2070 or PIA

Also clearly stated in the revised language of Freddie’s Selling Guide is the requirement that the Seller may not use tax-assessed valuations or BPOs to determine value.

You can access the entire Selling Guide, here.

Comments
  1. Jerry

    There’s a step in the right direction…congrats to Freddie Mac – leave it to the professionals.

  2. Mikey

    Too little, too late. I have no confidence in Fannie or Freddie.

  3. Anna

    The BPO/Asset companies ruined the market. Many Realtors got into this business for suplement income. They are factories of numerous orders/day and there is alot of fraud involved. Many Realtors lie on them, and the Asset companies force them to come in at a certain price to benefit themselves/investors, etc. I was a victim of an Asset company forcing me to bring in the value of a property that I couldn’t do because it was way to low. Long story, but I have learned alot about the fraud that is going on within these Asset Companies and many Realtors involved with doing the BPO’s. It’s a bit too late, but it needs to change NOW!

  4. Gayle F

    How can we be paying the bills for the asset companies who place the responsibilty on Agents to pay past due amounts on foreclsoures and wait for reimbusements, Litton Home Servicing is implenting this and 1000′s of dollars are being paid by agents for this company I am sure there are many more.

  5. Mark

    Anna who are you to imply that Realtors and Asseet management companies are committing fraud? Do you have evidence of fraud? If so you should report it to the authorities. There are many hard working agents out there who provide BPO’s that help the lenders and others sort through the mess started when the Democrat congress decreed every living being must own a home. Any new Fannie or Freddie policy is designed to cover for their own incompetence. Clueless Realtors are a dime a dozen these days.

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