HVCC resources: FAQs, telebriefing, myths document.
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 www.magnetmail.net/images/clients/Appraise/attach/FannieMae_HVCC_FAQs.pdf, and the Freddie Mac FAQ can be located at www.freddiemac.com/singlefamily/hvcc_faq.html
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 www.aba.com/teleweb/tb_calendar.
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 www.appraisalinstitute.org/newsaduocacy/downloads/HVCC_myths.pdf.
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|Title Annotation:||News for Appraisal Professionals|
|Publication:||Valuation Insights & Perspectives|
|Date:||Mar 22, 2009|
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