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The Home Valuation Code of Conduct (HVCC) went into place on May 1, 2009 for
conventional loans and January 1, 2010 for FHA loans. For purposes of this
discussion the lender is the mortgage banker. The loan production staff includes the
broker, loan officer or any other employee “responsible for generating loan volume or
approving loans as well as their subordinates. This would include any employee whose
compensation is based on loan volume or the closing of a loan transaction.”
Employees in the credit administration or credit risk management are not included.
Some of the key changes of the HVCC are:
The full 6 page HVCC regulation can be found here: HVCC REGULATION
The Frequently Asked Question on HVCC can be found here: FannieMae FAQ'S
conventional loans and January 1, 2010 for FHA loans. For purposes of this
discussion the lender is the mortgage banker. The loan production staff includes the
broker, loan officer or any other employee “responsible for generating loan volume or
approving loans as well as their subordinates. This would include any employee whose
compensation is based on loan volume or the closing of a loan transaction.”
Employees in the credit administration or credit risk management are not included.
Some of the key changes of the HVCC are:
- Loan production staffs are forbidden to select, recommend or influence the
selection of an appraiser (See HVCC Section III. B & FAQ 33/34 ) - Loan production staffs are not allowed to ask for comp checks (See HVCC
Section I. B. 5) - Loan production staffs are not allowed to provide estimated or target values (See
HVCC Section IV.B.4 of HVCC) - Loan production staffs are not allowed to have any substantive communications
with the appraiser (See HVCC Section IV. B. 3) - There will be no more COD appraisals. FAQ 15 states that the appraiser is
prohibited from collecting payment directly from the borrower. The problem will
be the extra tracking and paper work involved, and if the deal does not
materialize, either because the value wasn’t there or for any other reason, the
person who ordered the appraisal will still be responsible to pay for the
appraisal. - Loan production staffs are not allowed to blackball appraisers without written
notice and evidence to the appraiser (See HVCC Section I. B. 8). As such any
existing black lists, including “MARI.com” are to be eliminated. - Lender shall ensure the borrower is provided a copy of the appraisal report no
less than 3 business days prior to the closing. (See HVCC Section II.)
The full 6 page HVCC regulation can be found here: HVCC REGULATION
The Frequently Asked Question on HVCC can be found here: FannieMae FAQ'S
| HOME VALUATION CODE OF CONDUCT (HVCC) / APPRAISER INDEPENDENCE REGULATIONS |
FJE APPRAISAL GROUP
Your Southern California Real Estate Appraisers
Your Southern California Real Estate Appraisers
| FJE Appraisal Group |
Voice 909.596.3765
FAX 800.470.1397
FAX 800.470.1397