Printer Friendly

HVCC resources: FAQs, telebriefing, myths document.

According to the Home Valuation Code of Conduct, which went into effect May 1, mortgage loans originated by lenders from there on out and after must comply with the Code in order to be eligible for sale to Fannie Mae and Fred die Mac. The Appraisal Institute has promoted a variety of resources to understanding the Code, including recent FAQs from Fannie and Freddie; a "Myths and Realities" document the organization drafted; and a telebriefing on the HVCC with the American Bankers Association.

Fannie's and Freddie's updated FAQs makes it clear that mortgage brokers still cannot order appraisals directly, but they can "initiate" appraisals with lenders or the lender's agents and even pay them if certain requirements are met. This appears to extend to or include "appraisal companies" in addition to appraisal management companies. The Fannie Mae FAQ can be located at, and the Freddie Mac FAQ can be located at

The FAQs are one part of what is covered in the AI/ABA telebriefing, Home Valuation Code of Conduct: Fundamental Requirements Bankers and Appraisers Need to Know to be Compliant The telebriefing features banking and appraisal industry leaders discussing the requirements of the HVCC, including organizational structures and practices that are allowed and prohibited; myths and realities of the HVCC; and best practices, policies and procedures to achieve compliance and promote appraisal quality. For more information on the telebriefing, visit

The myths and realities of the HVCC portion of the telebriefing came from a document released by the Appraisal Institute, which it is asking appraisers to share with clients.

"In general, there is confusion and misinformation in the marketplace regarding HVCC compliance and appraisal policies, particularly in regard to use of third-party vendor management firms," noted Bill Garber, director of government and external relations for the Appraisal Institute. Perhaps the most common myth currently circulating around the industry is that the HVCC will require all lenders to use AMCs when ordering appraisals However, as Garber points out, "The HVCC makes no stipulation that lenders must use AMCs and, in fact, the Code allows lenders to engage appraisers directly without using third parties."

Another popular misconception is that loan production staff will be prohibited from communicating with appraisers, when in fact loan production staff have the ability to communicate with the appraiser, but may not select, recommend or influence the selection of an appraiser for a given assignment. "But these individuals will still be allowed to ask necessary questions and ensure appraisal quality," Garber said.

To view the Appraisal Institute's HVCC Myths and Realities document, visit
COPYRIGHT 2009 The Appraisal Institute
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2009 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:News for Appraisal Professionals
Publication:Valuation Insights & Perspectives
Date:Mar 22, 2009
Previous Article:Advocating for a better future.
Next Article:Freddie says "no" to BPOs.

Related Articles
AI-ABA telebriefing: hurricane recovery, Scope of Work and Fannie Mae forms.
Victories at home, visions abroad.
Five things you can do today to prepare for the HVCC.
Appraisers react to Fannie, Freddie valuation code of conduct.
Bill Rayburn, chief executive officer, FNC Inc.
Federal law could jumble NYC appraisals.
A new code of conduct.
Appraisal management companies on the rise.
Getting back to work and going digital.

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters