| HOME VALUATION CODE OF CONDUCT (HVCC)
Effective May 1st, 2009, the following appraisal policy will be implemented for Conventional loans.
Loan Application date prior to May 1st,2009
– No changes to the appraisal guideline. An appraisal from the broker may still be acceptable.
Loan Application date on or after May 1st, 2009
– HVCC requirement applies and appraisal from the broker is NOT acceptable. Broker must order an appraisal with an AMC (Appraisal Management Company) such as AppraisalAssociatesLA.com by faxing the appraisal request to 888.90210.27 and the appraisal report must be delivered to the Lender in their name.
The Home Valuation Code of Conduct is intended to reinforce the home appraisal process and prohibits lenders from accepting an appraisal prepared by an appraiser that was ordered by a mortgage broker. However, brokers may initiate the appraisal process on a lender's behalf in accordance with arrangements made by the lender. Please see FNMA announcement for more information. (https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/appcode/)
To comply with all aspects of the Home Valuation Code of Conduct (HVCC), The lender requires the appraisal for conventional loans with the loan application date on or after May 1st, 2009 be ordered through an AMC such as ApprasialAssociatesLA.com.
Appraisal Associates LA Technologies, Inc. is the technology conduit for Appraisal Associates LA, so you can order an HVCC compliant appraisal. |
Home Valuation Code of Conduct
Enhancing the independence of appraisers
The Home Valuation Code of Conduct (the Code) is the result of a joint agreement between Freddie Mac, the Federal Housing Finance Agency (FHFA), and the New York State Attorney General to enhance the independence and accuracy of the appraisal process, and provide added protections for homebuyers, mortgage investors and the housing market.
Effective Date
Effective May 1, 2009, Freddie Mac will no longer purchase mortgages from Sellers that do not adopt the Code with respect to single-family mortgages that are delivered to Freddie Mac. Also, effective for single-family mortgages with loan application dates on or after May 1, 2009, Freddie Mac Seller/Servicers must represent and warrant that the appraisal report is obtained in a manner consistent with the Code. The sale of the following mortgages is excluded from the representation and warranty: FHA/VA Mortgages, Section 184 Native American Mortgages, and Section 502 Guaranteed Rural Housing Mortgages.
Independent Valuation Protection Institute
We will work with the New York State Attorney General, FHFA, Fannie Mae and other mortgage market participants regarding the Independent Valuation Protection Institute (Institute). The Institute has not yet been established, and therefore, the provisions regarding the Institute are not yet effective.
For more information
Training Opportunities
Visit The Learning Center for Home Valuation Code of Conduct training resources, including our recorded webinar session.