New York’s Mortgage Crisis

From the New York Times:

That, analysts said, has helped Mr. Cuomo essentially circumvent a federal regulatory setup that prevents states from regulating nationally chartered lenders.

Under the agreement, they cannot buy a mortgage from a lender unless the home has been evaluated by an independent appraiser — not, as has often been the case, affiliated with the lender or broker.

Appraisals typically cost around $300, but can cost more for unusual properties that defy easy comparison.

An official in Mr. Cuomo’s office declined to comment, but Howard Glaser, a principal of the Glaser Group, a Washington-based mortgage industry consultancy, said lenders could, in fact, accept an appraisal that was completed on behalf of a different lender, as long as it met the second lender’s standards.

Mr. Cuomo’s appraisal agreement represents a de facto regulation of national banks, which must comply with the agreement or lose their primary market for loans.

 

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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