Mike Kennedy
Elite Member
- Joined
- Sep 28, 2003
- Professional Status
- Certified Residential Appraiser
- State
- New York
AI NEWLSETTER
GSEs Address Independence, AMCs, HVCC at Valuation 2009
As part of a panel discussion at Valuation Expo 2009, Jacqueline Doty, director of collateral policy at Freddie Mac, and Robert Murphy, senior business manager, enterprise risk management at Fannie Mae, presented their agency updates on the impact of the Home Valuation Code of Conduct, appraisal management companies and appraiser independence.GSEs Address Independence, AMCs, HVCC at Valuation 2009
Doty reiterated comments made last month and earlier this month regarding the fact that her agency had received complaints about appraiser independence prior to the implementation of the HVCC and that the code has “stemmed many of these complaints” and “enhanced independence of appraisers.” Further, she said, “Our findings support we are getting higher quality of appraisals than before.” She attributes that to the fact that lenders are paying more attention to the appraisal process.
She emphasized that while Freddie Mac doesn’t regulate industry players, but rather, along with Fannie Mae, is itself regulated. As an enterprise overseen by the Federal Housing Financing Agency, Freddie has measures to deal with violators, which is its internal exclusionary list. Doty said Freddie is “beefing (that) up.” She said Freddie shares the list with the Mortgage Asset Research Institute (MARI), which lenders access to research industry participants involved in mortgage fraud. Doty also had advice for appraisers regarding AMCs: “Make sure you are dealing with a reputable” one since they come in “all shapes and sizes” and some have been around for many years, without incident.
In his portion of the discussion, Murphy addressed myths and clarifications about the HVCC, including some located in the agency’s FAQs. Among the facts: communication between loan officers and appraisers is acceptable, to the extent that it is to clarify or correct factual information. What is not allowed, he said, is substantive communication regarding a specific value needed or any other influence. He also said that the HVCC is not causing lower values, but attributed that to the economic downturn.
Further, he clarified that the HVCC does not require the use of AMCs, but places the same requirements on them as on lenders. He also addressed geographic competency, stating that appraisers testify that they have the knowledge and tools required for local market expertise when they sign each report. And in cases where they travel out of area and lean on a real estate agent for comparables, it is up the real estate agent to report appraisers who are not compliant with USPAP.
Doty and Murphy, along with Alfred Pollard, general counsel for the Federal Housing Finance Agency, and Sue Potteiger, collateral risk manager for Fannie Mae, were also panelists on a pre-conference Collateral Risk Network meeting. The meeting allowed appraisers and agency representatives to speak off the record on updates from the FHFA and government-sponsored enterprises. Also part of the CRN were panelists Calvin Moye, SRA, president of CALMO Realty Services Inc., who gave an update of the regulatory landscape;Federal Bureau of Investigation special agent Andre Jeanfreu, who spoke on mortgage fraud; Appraisal Subcommittee Executive Director Jim Park, who gave an update on the ASC; and Santiago Herreros de Tejada, international director of Grupo Sociedad de Tasación, a group of companies involved in the appraisal business in Spain since 1982, who gave an overview of the Spanish Appraisal Market.
Due to the number of issues continuing to get clarified as debate about the code’s impact on AMCs, appraiser independence and other related issues, attendee John Cirincione, SRA, general appraiser and director of business development for JVI Solutions, in Lake Mary, Fla., said the theme presenting itself at the first day of meetings is that “a need for higher-level analytics is coming back.” He added that the need to leverage technology and new tools for analysis “are important to embrace to not only increase efficiency but more effectively analyze large data sets in providing credible appraisal reports.”
Walt Disney was right - "It's a Small World After All".
