NAR_grey_logo-01

HVCC Agreement Coming….Eventually

Today the Federal Housing Finance Administration (FHFA) released its 2008 Performance and Accountability Report. The 186 page document had a couple of brief paragraphs on the infamous appraisal agreement between Fannie Mae, Freddie Mac, and the NYS Attorney General Andrew Cuomo. While not providing a lot of information it did hint at what might be coming in a revised agreement. Prohibiting coercion, the complaint hotline (though does not mention the valuation institute that would be funded by the GSEs), and the code of conduct are all explicitly mentioned in the report (see end of this posting for more).

In related news, supporters of the deal believe the final agreement could be announced soon. Inside the GSEs reports that the deal may get a boost on Capitol Hill since Senator Elizabeth Dole (R-NC) was defeated by Democrat Kay Hagan who supports the agreement. Senator Dole was a rather vocal opponent of the agreement. In the same article the Chief Appraiser of Wachovia believes that a final version of the HVCC will include changes to the appraiser employment section.


*******************************************************************************************************************************************


New Appraisal Code to Combat Mortgage Fraud
In March 2008, Fannie Mae and Freddie Mac took steps to combat appraisal fraud by signing an agreement with the New York Attorney General and OFHEO to strengthen the independence of the appraisal process. Appraisals estimate the market value of a property to secure mortgage finance. They are completed by a licensed and certified real estate appraiser. However, during the last few years when house prices were growing rapidly, not all appraisers followed best practices and some were pressured to provide flawed appraisals. The agreement outlines additional guidelines for appraisals that add to the underwriting standards of Fannie Mae and Freddie Mac.

For example, the agreement includes provisions that prohibit coercing appraisers and that assure lenders take appropriate steps to receive valid, accurate, and reliable appraisals. The agreements also enhance quality control in the appraisal process and would establish a complaint hotline for consumers. An important part of the agreement is a Home Valuation Code of Conduct, known as the Appraisal Code, which is expected to be implemented early in 2009. The Appraisal Code is one way that Fannie Mae and Freddie Mac seek to ensure that homebuyers and secondary mortgage market investors get fair and independent property valuations.
-Source: FHFA 2008 Performance and Accountability Report, p. 95-96

Comments
  1. Andviceversa?

  2. Finally, A Usefull Website.

  3. As the financial crisis grips the entire world. We need to be more informed
    of the options and choices that we have. Found this website that has a lot
    of information regarding reverse mortgage and other mortgage related issues.
    The website is dedicated to Mortgage problems faced by real people and the
    answers to it. You will find a lot of questions and the answers to those
    questions posted by reall real people so it is very informative.
    So see the answers to you mortgage questions at What Is Reverse Mortgage

ADD YOUR COMMENT