Apr
10

Fannie, Freddie Release Updated FAQs on HVCC

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On March 31, Fannie Mae and Freddie Mac released an updated Frequently Asked Questions regarding the Home Valuation Code of Conduct that is set to take effect May 1, 2009. Highlights of the FAQ include sections regarding mortgage broker initiation of the appraisal process, quality control, and loan production staff training.

In its FAQs, Fannie and Freddie reiterated that all appraisers must be licensed or certified by the state in which the property is located; that lenders are permitted to use in-house appraisers, provided the lender is in full compliance with other sections of the code; and that lenders are not permitted to use appraisal reports completed by an appraiser “selected, retained or compensated in any manner by mortgage brokers and real estate agents.”

Fannie and Freddie clarified a mortgage broker can initiate an appraisal request through a lender’s designated appraisal management company, and presumably, a designated appraisal company. Further, Fannie and Freddie also clarified that a lender may direct a broker to use a Web portal set up either by the lender, or by the lender’s authorized agent, through which the broker inputs a request for an appraisal and then triggers the lender’s system to order an appraisal.

The two lenders also said that they are working with the New York State Attorney General, as well as the Federal Housing Finance Agency, to finalize the details of the Independent Valuation Protection Institute. They reiterated that since the Institute has yet to be established, the provisions regarding it in the Code are not yet effective.

LINK TO PDF OF THE DOCUMENT HERE:
http://www.freddiemac.com/singlefamily/hvcc_faq.html

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