Fannie Mae is working with regulators to set standards for home appraisals. The Fannie Mae Home Valuation Protection Code. From the press release:

First, to help ensure appraisal independence and valuation protection, Fannie Mae will adopt a Home Valuation Protection Code. The Code establishes requirements governing appraisal selection, solicitation, compensation, conflicts of interest and corporate independence, among other requirements. Fannie Mae will adopt the Code immediately, and make appropriate changes to its Sellers Guide to reflect the Code. Beginning January 1, 2009, Fannie Mae will require that lenders represent and warrant that appraisals prepared in connection with mortgage loans originated on or after that date that are delivered to Fannie Mae conform to the Code.

Second, Fannie Mae will provide $12 million over five years to help establish an Independent Valuation Protection Institute. The Institute will monitor and study the area of home valuations. The Institute will establish a hotline for consumers to contact if they believe the appraisal process has been tainted or if they believe they have been harmed by appraisal fraud. Appraisers also will be able to contact the Institute if they believe their independence has been threatened in any way.