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Home Value Protection Program

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hal380

Thread Starter
Senior Member
Joined
Apr 26, 2003
Professional Status
Certified General Appraiser
State
Connecticut
After a whole bunch of whereases the document gets down to some brass tacks.

Roman # 1, Para 1 "...During a period before Jan 1, 2009, Fannie Mae shall provide the opportunity for comments from market participants on its implementation and deployment of the Code; commentators should provide copies of their comments to OFHEO. The parties to this agreement understand the significance of the reforms provided for herein and therefore will in good faith review the comments received during this period and will consider any amendments to the Code necessary to avoid any unforeseen consequences"

I have read the Home Value Protection Program as well as the Code of conduct, several times. Item #1 of the Code of Conduct states that the withholding or threatening to withhold timely payment from the appraiser would be prohibited. I sure hope this does not imply or mandate that appraisers can no longer do business COD at the door of the borrower.

I went to the OFHEO website to see how to make a comment and the site was not yet set up to receive comments. So I called the OFHEO and was told that the comment feature was not yet set up, but would be soon.

I think it is important for us to read these documents and make appropriate comments. Now is the only time we will be able to have any influence on this program.

I was assured by the OFHEO person I spoke with that she would contact me when the site was equipped to handle comments, I will pass the word.

Regards

Hal
 

John Henry

Sophomore Member
Joined
Jan 13, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Home Valuation Code of Conduct

I have read the Home Valuation Code of Conduct several times and basically I feel it is a well written,well thought out document and it will go a long way in eliminating mortgage fraud and provide consumer protection. The only glitch is this is going to drive work to the management companies. In my opinion there are two options to correct this glitch. In Roman Numeral III something similar to this should be added. FNMA will not buy a loan package from a lender where the management company has taken more than 20% of the fee charged to the homeowner. This fee is to be determined by the Appraiser not the management company. The management company is free to charge the bank/lender an additional fee. Option #2 Not sure how many of you remember the old days when you had to be FNMA approved and were assigned a FNMA number. If we go back to something similar like this where you had to be approved by FNMA apprasials could be ordered by anyone but FNMA would not buy a loan package if the Appraiser was not approved by FNMA. Option #3 Managment Company bills the bank/lender for their services.

Also under Roman Numeral #V it states that any employee of the lender or management company tasked with slecting appraisers for an approved panel or substantive appraisal review must be (1) appropriately trained and qualified in the area of real estate appraisals. I think that training should be a minimum of 100 classroom hours which would include the 15 hour USPAP class and 7 hour USPAP update class every two years.

Maybe one of you gentleman or ladies more eliquent with the english language than I could write a petition.
 

Jim Onderisin

Senior Member
Joined
Sep 15, 2003
Professional Status
Certified Residential Appraiser
State
Illinois
Hal: I read it the same way; appraisers could not accept payment from anyone other than the lender.

Unfortunately, given the current state of the industry, it looks as though the attorney general (AT) and OFHEO are driving the business to the management companies. They must owe some favors. Just as unfortunately, it doesn't appear that the AT or OFHEO care about the quality of appraisals generated by AMCs. $300 will buy a better quality appraisal from the person actually doing the work than $150 will ALMOST every time. But the AT and OFHEO are focused only on removing the incentive to lie and cheat. I suppose that's something. And, I suppose what we are discussing are exactly the type of comments regarding the agreements which the organizations are requesting.
 

hal380

Thread Starter
Senior Member
Joined
Apr 26, 2003
Professional Status
Certified General Appraiser
State
Connecticut
Some more info

Here is an email I received from OFHEO

from Lakroune, Amy <[email protected]>
to [email protected],
date Fri, Mar 7, 2008 at 2:32 PM
subject Comments and questions regarding Appraisal Valuation Code and Institute
mailed-by


Reply


Thank you for contacting OFHEO regarding the Appraisal Valuation Code and Institute.
A method for providing input to Fannie Mae and Freddie Mac (with copy to OFHEO) will be posted shortly.
If you have further questions, please submit them to [email protected].

Thank you.

Amy L. Lakroune
External Relations Specialist
OFHEO
202.414.8920
Goals are dreams with deadlines.
~Diana Scharf Hunt

I think there are forum members who have credentials such as Gregoire (sp?), Pam, and AQB Certified USPAP instructors who should comment on this program. While everyone is encourgaged to comment, it would be hard to ignore the comments form these leaders.

Regards

Hal
 

c w d

Senior Member
Joined
Oct 2, 2006
Professional Status
General Public
State
Florida
Here is an email I received from OFHEO

from Lakroune, Amy <[email protected]>
to [email protected],
date Fri, Mar 7, 2008 at 2:32 PM
subject Comments and questions regarding Appraisal Valuation Code and Institute
mailed-by


Reply


Thank you for contacting OFHEO regarding the Appraisal Valuation Code and Institute.
A method for providing input to Fannie Mae and Freddie Mac (with copy to OFHEO) will be posted shortly.
If you have further questions, please submit them to [email protected].

Thank you.

Amy L. Lakroune
External Relations Specialist
OFHEO
202.414.8920
Goals are dreams with deadlines.
~Diana Scharf Hunt

I think there are forum members who have credentials such as Gregoire (sp?), Pam, and AQB Certified USPAP instructors who should comment on this program. While everyone is encourgaged to comment, it would be hard to ignore the comments form these leaders.

Regards

Hal

Why would it be harder now than in the past 10+ years they've been commenting about the abuses and problems?

I'm impressed with the amount of hope that the agreement has brought forth from the appraisers of this forum. And, I'm disappointed. This agreement says nothing new with the exception of who can order appraisals directly from appraisers. The government, the GSE's can make all the rules they want that state what everyone can and cannot do. But, until the time that they address the enforcement aspect it's all rather moot!

Instead of the lender telling us directly to inflate value it's only going to come through the FNMA and Freddie blessed AMC's. I don't understand why people can't see this!!
 
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