Freddie Mac, Fannie Mae Update HVCC FAQs

The government sponsored enterprises (GSE), Fannie Mae and Freddie Mac, recently updated their Home Valuation Code of Conduct (HVCC) frequently asked questions (FAQ).  Both GSEs state that while there may be some differences with two sets of FAQs in terms of style or structure, they present no substantive differences in interpretation or implementation of HVCC.  Nor do they impose any different operational requirements.  The FAQs include new questions and are also organized by subject area.

NAR has called on both GSEs to coordinate their FAQs and codify them into existing appraisal policy.  In 2009, then NAR President Charles McMillan attended a series of appraisal summits sponsored by the National Association of Home Builders where he asked both GSEs to work together to ensure the FAQs are coordinated and do not result in greater confusion for stakeholders in the real estate industry.

The Freddie Mac FAQs can be found here and the Fannie Mae FAQs can be found here.

  1. As far as I’m concerned, the only questions of interest to me are not answered:

    Fannie Mae – Q67 – What is the status of the IVPI?

    Answer – The structure of the IVPI has not yet been determined and the IVPI has not yet been established. Therefore, the provisions in the Code regarding the IVPI are not yet effective.

    Freddie Mac – Q 82. When will the Independent Valuation Protection Institute be established?

    Answer – We are working with the New York State Attorney General, FHFA, and Fannie Mae regarding establishment of the Institute. Because the Institute has not yet been established, the provisions regarding it in the Code are not yet effective.

    How in tarnation can an “agreement” be implemented with absolutely no means of enforcement?

  2. Margie Gosser

    As far as I am concerned the GOVERNING (hummm) folks wherever they are…never indicated or cared to LOUD ENOUGH to have Lenders understand the HVCC in the first place. BOA, CountryWide, Wells Fargo Own AMCs. Fox garding the hen house mentality. AMCs do whatever they want. From two AMCs: If I expand my territory to places unknown, our office can be offered work…work with a fee of $175 (fair fee $350-$400). So, I can not accept because unknowns with a mandated 24 hr turn time is…just not ethical, violates so many rules, and also because even if I did know the area, I can not afford to work for free. So, they want to remove me from their active territory list. While being transferred to that DEPT, I just hang up. Appraisal Subcommittee…check it out to see just how many appraisers are turning in their licenses. Just soooo sad. When the Health Care crap goes into effect so does the Governments ability to take control of my bank account. It’s in the part they forgot to mention. From a small business appraisal company standpoint, they won’t be much interested in my Bank Account, I will be long gone. On second thought, I guess they will want to drain whatever’s in the account because I won’t be able to afford the big penalities for not being able to afford the high premiums. Sounds …crazy. Is this America??? Home of the…??? …really???

  3. Jeffrey L. Noyes

    I find it completely absurd that the free enterprise right of this country is totally stripped away from me as a small biz owner and appraiser. The fact that Cuomo, who is a state agent, can dictate federal policy makes me sick. Also, the fact that the bank (WAMU) was/is the culprit that started all this HVCC crap and that Cuomo spun the situation to where F&F, the actual victims in the case, are treated as the culprit. Due process and so many other rights we citizens have were trampled for Cuomo to get it through when in actuallity Cuomo should have recused himself when he learned that he has clients directly related to WAMU. The problem was a bank picked an appraisal company that went along for the ride and caused many, many problems. Now with HVCC, the bank picks the appraiser. Isn’t that how trouble started in the first place ? There is a way to achieve independency without this ”firewall” that is un-necessary. License the loan officers. The brokers already are licensed, l/o’s are chasing a comission with no threat of rebuke, that’s not good for the consumer. The ERC allows and demands open communication between appraiser and anyone else involved. That’s the way it (the process) was designed and should be. AMC’s are a rip off. I have signed up with many and have not received 1 assignment from any. I live wihin a active market and would normally be busy. Not with HVCC & AMC’s which actually creates a bank controlled system when there are laws already in place such as F.I.R.R.E.A. from the S&L bailout.

  4. Ron

    I am a Certified Ceneral Appraiser with over 10 years of solid, unblemished experience. I have never received a call from an un-satisfied lender, any clients or their Attorneys and have never have I been the subject of any complaints from my State Appraial Board. I also have a B.S. Degree in Business and am licensed as a real estate broker. Over the years I built a nice practice with solid established real estate and mortgage professionals who understood that I did not play games and diligently worked to produce a credible, fair and professional report. I never failed a review and,to my knowledge, never had an appraisal value reduced. I didn’t do AMC work because, after accepting a few assignments, I realsized they didn’t pay a fair fee, didn’t care about the requirements to do an adequate job and applied pressure for certain numbers. As such, I did not find working with AMCs in my best interest. Instead, I trugged along and did it one solid client at a time. Now, after 10+ years of work and honest effort, I am sitting here still pondering how rules that have destroyed businesses by legislating their clients to another business can be created let alone allowed to become the rule of the land. when I look at what the HVCC has cost me, I literally get sick to my stomach.

  5. Hal Carter

    I’ve been a residential appraiser for nearly 40 years now and am sad to say I’m probably going to activate my brokers license and quit appraising entirely. I’ve been through six recessions, albeit never one as bad as this one, and have survived every time by my diligence and work ethic. Now, because of HVCC, I’m being phased out the door. Not once in the past year has one AMC wishing to order an appraisal ever asked anything about my experience in the market or proficiency in what I do. Its always “fee and turn time”. In addition, the home owner or realtor, if they have any savy about the market in their area at all, do NOT have the right to state who they will not allow to do the appraisal on their property. I’m selling my home and to refuse a certain appraiser on to the property I have to have the mortgage broker switch and order another appraisal through another AMC.

    I’ve gone from a client list of 394 clients to maybe 6 and I’m disgusted. If the way things are now is a result of the present administration its just too damn bad we have to wait a couple of years to unload the crew.

  6. Dennis Matera

    Hello the fact is that the appraisers did not cause the problems that our market is having. Lets face it it was the mortgage reps, banks, wall street money people and the government that let their “GREED” run wild….Thats true some one once told me that “Human Greed always far exceeds Human NEED” aint that the truth…. Anyway Why do appraisers have to pay part of their fee to support the HVCC. We are losing anywhere from 35% to 50% of what we should be earning on each job… and we do 99 % of the work !!! This is Nuts!!! Pass this HVCC cost on to the consumer, the mortgage company or the bank –not the appraiser…We are going to lose lots of good appraisers and those that accept 1/2 fee cant be producing quality reports. Thanks for reading just my two cents.