Appraisals To Get Stricter Guidelines

Housing Secretary Andrew Cuomo offered thousands of homebuyers improved protection Monday against bad appraisals that he said can saddle buyers with huge repair bills.

The protection plan, which will help ensure fair estimates of the condition of a house, applies to the 800,000 buyers who obtain Federal Housing Administration mortgages each year.

Cuomo said the plan will require a more complete survey of the physical condition of a house; require that defects be disclosed to potential buyers; and impose criminal and civil fines for improper home appraisals.

Penalties for criminal violations would range up to a five-year jail sentence and a $250,000 fine for individuals and a $500,000 fine for an organization, Cuomo said.