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Fannie water downs (dare I say drowns) HVCC

Discussion in 'Fannie Mae, Freddie Mac, USPAP' started by Elliott, Jan 18, 2009.

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  1. Elliott

    Elliott Elite Member

    29
    Apr 23, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Oregon
    Just to make sure the HVCC means nothing except low fees,
    and being under the thumb of phone monkey AMCs....
    Q&A from Fannie:

    Q1. What loans are affected by the new Home Valuation Code of Conduct?
    Fannie Mae has agreed to adopt the Home Valuation Code of Conduct (“the Code”) for all
    conventional, single-family loans originated on or after May 1, 2009, that are delivered to Fannie
    Mae. For purposes of the Code, origination date means the date of the application. The Code
    will not apply to multifamily loans, or to loans insured or guaranteed by a federal agency;
    the
    Code only applies to 1- to 4-unit single-family loans sold to Fannie Mae. The Code will not apply
    to loans sold to Fannie Mae on or after May 1, 2009 that were originated prior to May 1, 2009.


    Q6. After May 1, 2009, is it permissible for Fannie Mae to purchase private label securities
    backed by mortgage loans that do not meet the requirement of the Code?
    Yes. The Code applies only to 1- to 4-unit single-family loans sold to Fannie Mae by mortgage originators. It does not extend to Fannie Mae’s investments in mortgage-related securities.

    Q7. Does the Code require lenders to obtain appraisals where they were under no such
    requirement pursuant to the Fannie Mae Selling Guide?
    No, nothing in the Code requires a lender to obtain a property valuation, or to use any particular
    method for property valuation
    . Nor does the Code affect the acceptable scope of work for an
    appraiser in connection with a particular assignment.

    Q9. Does Section I.B.(9) specifically prohibit a lender from ordering a second appraisal?
    No. Section I.B.(9) only prohibits a lender from ordering a second appraisal when they are
    attempting to influence the outcome of the first appraisal and are now “value-shopping.” As a
    risk control measure for certain loan products, it may be common for a lender to order more
    than one appraisal, and this subsection does not prohibit that practice.

    Q13. Does the Code prohibit an appraiser from collecting payment for the appraisal directly
    from the borrower?
    Yes,
    for loans to be delivered to Fannie Mae. The Code requires the lender or any third party
    specifically authorized by the lender to select, retain, and provide for all compensation to the
    appraiser.

    Q21. May in-house appraisers prepare appraisal reports?
    Yes, in-house appraisers may prepare appraisal reports if the conditions of Section IVB. are
    met.

    Q22. May a lender’s in-house appraiser adjust the value on an appraisal during an
    appraisal review as part of a pre-funding or post-funding quality control process?
    Yes,
    a lender may use an appraisal that has been adjusted by an in-house appraiser during a
    review process. The Code does not prohibit the underwriting of an appraisal by a lender’s
    underwriting staff. The Code does not prohibit a lender’s due diligence in originating a loan.


    Q25. Is a lender required to use an appraisal management company for ordering
    appraisals?
    No. A lender may order appraisals directly from an individual appraiser.

    Q26. May an appraisal management company affiliated with, or that owns or is owned
    in whole or in part by the lender or a lender-affiliate, order appraisals?
    Yes, an appraisal management company affiliated with, or that owns or is owned in whole or in
    part by the lender or a lender-affiliate, may order appraisals if the appraisal management
    company meets the criteria of Section IV.B. of the Code.

    (and drum roll........)

    Q37. What is the status of the IVPI?
    The structure of the IVPI has not yet been determined and the IVPI has not yet been
    established. Therefore, the provisions in the Code regarding the IVPI are not yet effective.



    Maybe they should rename the HVCC, the HAHA, as in big joke on
    appraisers.

    https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/appcode/pdf/hvccfaqs.pdf
     
  2. Riick

    Riick Elite Member

    32
    Aug 14, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Delaware
    IVPI - major joke.
    Last year I ran the numbers on getting something like that running.
    There is not enough money provided per year to hire even one investigator and one secretary/typist per State.

     
  3. Esox

    Esox Member

    3
    Apr 13, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Wisconsin
    What do you want to bet that a couple months in they say the Code is working so well that they're putting the IVPI on hold for the time being?

    Kevin
     
  4. Riick

    Riick Elite Member

    32
    Aug 14, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Delaware
    Can anyone point me to where in the HVCC there is any reference to appraisers not collecting their fee "at the door" ??
    Just where did FNMA come up with that statement?
    I can certainly guess why .... keep the appraiser under your thumb.


    We all did notice that any reference to Lenders not owning, in whole, or in part, an AMC .....has just d i s a p p e a r e d.
     
  5. Lobo Fan

    Lobo Fan Elite Member

    0
    Nov 28, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New Mexico
    It is in there. It is in a provision that says that only the lender/client can compensate the appraiser. I think it was to prevent the MB from slipping some cash to their pet appraiser. That is OK. If it is an iffy client, just hold the report until the payment is converted to folding green money.

    No tickee no laundry.
     
  6. Riick

    Riick Elite Member

    32
    Aug 14, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Delaware
    HVCC -vs- Industry Players at work:

    ------ LINK
     
  7. Elliott

    Elliott Elite Member

    29
    Apr 23, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Oregon
    I got an assignment from a SoCal AMC, they spring up like
    weeds, and I required them to send the check before I'd send
    the report. So even though AMCs don't think their sheet
    stinks, they are still fully capable of paying in advance
    in this economy.
     
  8. tjcou812

    tjcou812 Junior Member

    0
    Aug 17, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Connecticut
    If appraisers can not collect our fees at the door they should also make it a requirerment that whom ever orders the appraisal assignment must pay the appraiser before they transmit the appraisal to them. Why do we have to wait 30,60, and in some cases more than 90 days to collect or fee. It's not fair that these companies will collect up front before they send out the appraisal order but we have to wait. They put our fees in their account and collect interest off it while we struggle to pay our bills.
     
  9. Riick

    Riick Elite Member

    32
    Aug 14, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Delaware
    Starting about 2001 I got an increasing number of calls for appraisals from MBs in California.
    .....And, a radically increased number of unpaid invoices as a direct result.
    Since I enjoy getting paid for my work, at that point, anyone calling from California
    had to arrange to pay me either by COD or a check overnighted to my office.

    Elliott has the right idea, and the check should be a cashier's or treasurer's check,
    where you won't have to worry whether it will clear or not.
    (( Nothing worse than doing a report, and having it cost you money. ))
     
  10. silverstreak

    silverstreak Sophomore Member

    0
    Dec 4, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    I have 4 rules. I work only for full fee, everything I send out is in pdf format, everything is C.O.D., and my turn around time is 1 week or sooner after the inspection. The only exception is they can send me a check or money order and when the check clears I will schedule the appraisal. I might have lost some work because of my requirements, but my life is a lot easier not having to chase money.
     
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