| Title: | Fannie Mae Offers Gudiance on Collateral Valuation Practices and Declining Markets (Ann.07-11) |
| Source: | Fannie Mae |
| Date: | 7/13/2007 |
|  Related Document(s): |
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Summary:
An accurate value for the property securing a mortgage loan is important in all markets, but the value becomes difficult to
evaluate when the subject subject real estate market is experiencing a decline in property values (“declining market”). Recent
trends indicate that certain markets are experiencing a decline in property values. One of the potential problems in a declining
market is the overstatement of property values in appraisal reports. This may result in the borrower not having an accurate
property valuation, and overvaluation of a property could result in increased loan losses should the mortgage loan subsequently
default.
Please select the Related Document to view Guide Announcements 07-11 and a Fannie Mae's response to Frequently Asked Questions.