WASHINGTON AP – The regulator who oversees national banks is protesting an agreement by Fannie Mae and Freddie Mac to stop buying mortgages that use lenders’ in-house appraisers, a pact intended to protect buyers from fraudulently inflated home prices.

John Dugan, the U.S. comptroller of the currency, is asking for withdrawal of the agreement that the two mortgage finance companies negotiated with New York Attorney General Andrew Cuomo and their federal regulator, on grounds it violates federal law and could have an unintended negative impact on the mortgage industry.