Chapter 10 REAL ESTATE

DISCUSSION

In late 2018, the administration's top financial regulators — the Federal Deposit Insurance Corp., the Federal Reserve and the Treasury Department's Office of the Comptroller of the Currency — issued a joint proposal that would make traditional appraisals unnecessary for many new mortgages originated for less than $400,000. (the current limit is $250,000) FNMA and FHLMC are also increasing the amount of times they give an appraisal waiver on home loans (as much as 40%) whereby the lender does not need to order a real estate appraisal on a home loan. 

What are your thoughts on these recent activities in the lending industry? Will it effect the industry in a negative or positive manner?

ASSIGNMENT

Describe the three approaches to value and give examples of the property type for which each would be most applicable.