Real Estate Appraisal Forum

appraisersforum.com logo
The Premiere Online Community for Real Estate Appraisers!
 Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
 
 
Go Back   Appraisers Forum > Real Estate Appraisal Forums > Fannie Mae, Freddie Mac, USPAP
Register Help Our Rules Calendar Archives Mark Forums Read


Closed Thread
 
Thread Tools
  #1  
Old 12-24-2008, 03:28 AM
VolcanoLvr's Avatar
VolcanoLvr VolcanoLvr is offline
 
Join Date: Oct 2003
Location: Inside the ring of fire
State: Washington
Professional Status: Certified Residential Appraiser
Posts: 2,830
Default Overview - the new HVCC

I've read it. Here's my take on the upcoming regulation:

The ‘new’ Home Valuation Code of Conduct (HVCC) is guaranteed to ******$ off many appraisers, industry participants, and will make others ecstatic. On balance, in my opinion, it is acceptable to returning our profession to what it should be….mandating independent unbiased opinions of real estate values provided by competent appraisers who fully respect the responsibility for doing so, and adhere to USPAP and other requirements.

The actual HVCC document does not contain the implementation date, which has been identified by other sources as May 1, 2009.

The HVCC applies to any loan purchased by the GSE’s….Fannie, Freddie, and presumably, Ginnie Mae. In practice, I suspect ‘in house’ loans from local and regional banks will be managed using the HVCC, separating ‘loan production’ staff from the appraisal ordering function.

Here’s my quick overview:

1-‘Comp Checks’ are forbidden
Pre-stating ‘value needed’ is forbidden (However, sales contracts must be provided for properties being purchased; this does not mean the appraiser must concur with the purchase price!)
2-Appraisers cannot be put on an ‘exclusionary’ list unless illegal or out of USPAP compliance work is submitted; then they must be notified in writing
3-AMC’s are NOT a mandatory entity for ordering of appraisals as long as separation of loan production is isolated from appraisal ordering
4-GSE’s will not purchase loans that are from AMC’s in which any lender has an ownership interest unless the entity has written policies and procedures that implement the HVCC provisions of appraiser independence
5-Mortgage Brokers and RE Agents cannot order an appraisal from any appraiser; lenders cannot accept any appraisal directly ordered from them
6-Loan production staff cannot have ‘substantive’ communications with the appraiser
7-Lender is ultimately responsible for paying the appraiser’s fee; no fee for service can be withheld regardless of the value reported or outcome of the loan
8-An Independent Valuation Protection Institute (IVPI) will be established [funding for same not mentioned] which will become a reporting agency for HVCC violations
9-Lenders may use in-house appraisers as long as their assignments comply with the HVCC in terms of assigning work
10-A minimum of 10% of appraisals (and ‘valuations’) will be randomly selected and “tested”
11-The HVCC does not mandate any particular valuation method, i.e., appraisal, AVM, evaluation, etc. in connection with any mortgage loan or mortgage financing transaction

There are more details within the HVCC document, but these are the highlights that affect appraisers. There will be much written by appraisal publications and the various web forums and appraiser associations over the next number of weeks before the May 1, 2009 implementation date.
Sponsored Links

  #2  
Old 12-24-2008, 04:48 AM
Greenback Greenback is offline
 
Join Date: Apr 2007
Location: I live in the land of the Real Estate Appraiser Trainee
State: Louisiana
Professional Status: Appraiser Trainee
Posts: 2,342
Default

Quote:
Originally Posted by Dave Towne View Post
...11-The HVCC does not mandate any particular valuation method, i.e., appraisal, AVM, evaluation, etc. in connection with any mortgage loan or mortgage financing transaction
Whoooop there it is!

Sincerely,
  #3  
Old 12-24-2008, 05:34 AM
Chris Colston's Avatar
Chris Colston Chris Colston is offline
 
Join Date: Jul 2003
Location: East Central Florida, Space Coast
State: Florida
Professional Status: Certified Residential Appraiser
Posts: 5,442
Default

Thank you David for the concise overview without the "emotion" and "sky is falling" whining. No one really knows yet what is going to come of this. As questioned before, I'm not sure how it is that one AG in NY can have influence over the rest of the country without some sort of Federal mandate.
__________________
Chris
  #4  
Old 12-24-2008, 05:47 AM
ResResearch ResResearch is offline
 
Join Date: Mar 2008
State: Maine
Professional Status: Certified Residential Appraiser
Posts: 34
Default

Per Fanne Mae web site they will have an Annoucement out on January 7, 2009 with details on implementation date, FAQs etc..
  #5  
Old 12-24-2008, 06:20 AM
Kevin Mc's Avatar
Kevin Mc Kevin Mc is offline
 
Join Date: Jun 2004
Location: Metropolis
State: New York
Professional Status: Certified Residential Appraiser
Posts: 9,638
Default

Quote:
Originally Posted by Dave Towne View Post

4-GSE’s will not purchase loans that are from AMC’s in which any lender has an ownership interest unless the entity has written policies and procedures that implement the HVCC provisions of appraiser independence
there you have it. Lender can own AMC. Appraiser independence my arse.
A license to steal with the government's blessing.
  #6  
Old 12-24-2008, 08:09 AM
Dan/Fla's Avatar
Dan/Fla Dan/Fla is offline
 
Join Date: Jan 2002
Location: Jacksonville, Fl
State: Florida
Professional Status: Certified Residential Appraiser
Posts: 775
Default

The Date of May1, 2009 came from the cover letter when we got the info

""FHFA ANNOUNCES HOME VALUATION CODE OF CONDUCT
Washington, DC – Federal Housing Finance Agency (FHFA) Director James B. Lockhart announced that Fannie Mae and Freddie Mac will implement a revised Home Valuation Code of Conduct (Code) effective May 1, 2009. The Code is based on an agreement between the Enterprises, the New York State Attorney General Andrew Cuomo and FHFA to improve the reliability of home appraisals. Following a comment period on the original Code, modifications were made by the Enterprises to reflect comments received. The revisions will facilitate implementation in the marketplace.""
  #7  
Old 12-24-2008, 08:52 AM
TJSum TJSum is offline
 
Join Date: Nov 2007
Location: Absurdastan
State: Maryland
Professional Status: Certified Residential Appraiser
Posts: 5,032
Default

Quote:
Originally Posted by Kevin Mc View Post
there you have it. Lender can own AMC. Appraiser independence my arse.
A license to steal with the government's blessing.
I've read on the forum from others that the reason many AMCs have gone to Appraisal Port is so they can claim this "independence". Politics is all about taking care of the politically connected, the beat goes on...

The bailouts were all about making sure nothing has to change for the politically connected and the taxpayers be damned...
__________________
Model Citizen
  #8  
Old 12-24-2008, 03:50 PM
FBN2007 FBN2007 is offline
 
Join Date: Mar 2007
State: Maryland
Professional Status: Licensed Appraiser
Posts: 68
Default

This basically means the end of the mortgage brokerage industry. They will no longer be able to survive since they can't get a comp check and order an appraisal. This void will now be filled by the big banks who will in effect have a monopoly on residential lending. And they also get to own the AMCs. All you have to do is follow the money to see who benefits. Certainly not appraisers as tens of thousands will have to find a new line of work.
  #9  
Old 12-26-2008, 04:23 PM
jgordond's Avatar
jgordond jgordond is offline
 
Join Date: Sep 2007
State: Rhode Island
Professional Status: Certified Residential Appraiser
Posts: 76
Default

Quote:
Originally Posted by FBN2007 View Post
This basically means the end of the mortgage brokerage industry. They will no longer be able to survive since they can't get a comp check and order an appraisal. This void will now be filled by the big banks who will in effect have a monopoly on residential lending. And they also get to own the AMCs. All you have to do is follow the money to see who benefits. Certainly not appraisers as tens of thousands will have to find a new line of work.
Not necessarily....I know for a fact that there are investors salivating at the availability to capture the niche market left behind by the big banks! There is room for smart $$ money in this economy. Remember the days when a loan was approved in a boardroom. Don't think those days won't come back. Quality appraisers will be needed. No more trying to fit a round peg in a square hole. It will be bad for a year or three, but if you can hang in there and maintain a quality reputation, you will be sought after!
__________________
We must overcome difficulties rather than being overcome by difficulties!
  #10  
Old 12-26-2008, 04:33 PM
FBN2007 FBN2007 is offline
 
Join Date: Mar 2007
State: Maryland
Professional Status: Licensed Appraiser
Posts: 68
Default

So please give us the business model for the appraiser of the future.
Sponsored Links

Closed Thread


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump




Copyright © 2000-, AppraisersForum.com, All Rights Reserved
     Terms of Use  Privacy Policy
AppraisersForum.com is proudly hosted by the folks at AppraiserSites.com

Fastest Way to Find a Real Estate Appraiser Enter Zip Code:
Partner Sites:
AppraiserUSA.com - National Appraiser Directory AllDomainsUSA.com - Domain Name Registration
DeadbeatListings.com - Deadbeat ListingsAppraiserSites.com - Web Hosting for the Professional Real Estate Appraiser
Find FHA Appraisers - FHA Appraiser Search Commercial Appraisers - Commercial Appraiser Search
Relocation Appraisal - Find Relocation Appraisers Domain Reseller - Business Opportunity
Home Security Buzz - Home Security Info Radon Testing - Radon Gas Info
My Medicare Forum - Medicare Info Stop Smoking Help - Help Quitting Smoking
CordlessPhoneStore.com - Great Cordless Phones AndroidTabletCity.com - Android Tablet Computers

Follow AppraisersForum.com:          Find us on Facebook            Follow us on Twitter


All times are GMT -5. The time now is 10:53 AM.

SiteMap: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93