The National Association of Mortgage Brokers (NAMB) has filed suit against the Federal Housing Finance Agency (FHFA) to block implementation of a new GSE appraisal rule, claiming it could put brokers out of business and allow appraisal management firms to profit at the expense of independent appraisers and consumers.

The new Home Valuation Code of Conduct,which goes into effect May 1, prohibits loan officers and mortgage brokers from directly ordering appraisals. NAMB claims the code has a "bias toward mortgage lenders" and that major banks are already requiring brokers to order appraisals through their affiliated appraisal management companies.

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