FHFA Kills IVPI, Announces Complaint Process

In a letter to New York Attorney General Andrew Cuomo, the Federal Housing Finance Agency’s (FHFA) Interim Director, Ed DeMarco, announced that the Independent Valuation Protection Institute (IVPI) will not be implemented by Fannie Mae and Freddie mac.  The two government sponsored enterprises (GSE) will instead implement a targeted appraisal complaint process for the Home Valuation Code of Conduct (HVCC).

Sounding much like the sort-of announced IVPI complaint form from November 2009, the GSEs will offer a standard form for appraisal complaints.  The GSEs will act on suspected acts of fraud and violations of HVCC.  The form should be available in weeks.

Mr. DeMarco cites the use of substantial tax payer funds on the GSEs as the primary reason the IVPI will not be implemented.  “In light of the billions of dollars in taxpayer funds the Enterprises have drawn since entering conservatorships, I cannot, as conservator, justify the Enterprises funding  the Institute. Therefore, as conservator, I have determined that they will not  proceed with that portion of the Cooperation Agreements.

The National Association of Realtors (NAR) has long called for the implementation of the IVPI.  As recently as April, NAR President Vicki Cox Golder called on FHFA to implement the Institute.  FHFA’s General Counsel Alfred Pollard responded in a letter Dated April 20, 2010 saying “FHFA continues to work with Fannie Mae, Freddie Mac and the Attorney General’s office on the Institute” and that “FHFA recognizes the value of a formal complaint process as envisioned with the Institute and continues to work towards that end.”

As of this posting, the NY AG had not released a comment.

  1. Retired Appraiser

    As Gomer Pyle would say “Surprise Surprise Surprise”

    How about it FNMA? Do you guys have another PR campaign in place to replace the IVPI hoax?

    Here is a thought: While you’re still in a confession type mood why not just admit that HVCC was devised as a way to put a few billion dollars in bank pockets in order to save them from bankruptcy. It’s not like the 18 month time line wasn’t a pretty good clue. Let’s hear the rest of the story…but from your lips…not mine.

  2. Retired Appraiser

    Within months we will become aware that the double dip in housing and the economy were indeed possible. Years from now when everything has been sliced, diced, & over analyzed we will also see that HVCC was one of the primary contributors to the secondary dip. By forcing most of the experienced valuation experts out of the business it will become a self fullfilling prophecy….and one that will take years to recover from. Experienced professionals will not come flooding back into a dead end profession after a bean counter say’s “Oops…maybe HVCC was a mistake”. By then they will have founded businesses that actually compensate them for their time and experience.

  3. Mark Kirkpatrick

    Directed to: Missouri Real Estate Commission

    Details on real estate transaction occurring on Friday, September 9, 2011:

    On or before Friday, August 19, 2011 we were informed by our step-mother, Shirley Kirkpatrick that the property that our brother and his wife, Kevin and Kathy Kirkpatrick own was going to be foreclosed and sold on the court steps on Friday, September 9, 2011. JT Kirkpatrick, our father, and Shirley were the owners and had generated the foreclosure process. On that Friday, August 26, 2011 both Scott Kirkpatrick and Mark Kirkpatrick decided to engage John Gibson, a real estate agent with ReMax located in Laurie, Missouri. We proceeded to go to John’s office in Laurie to discuss. Upon our arrival John was not in but expected. We during just a normal conversation asked the two ladies up front if they were aware of anyone at the office reviewing foreclosures in the local newspaper. They indicated no but we should ask John. When John arrived we indicated to him that the foreclosure was going to happen and the sale notification was in the Stover, Missouri newspaper. He indicated he never watched the news paper for any type of foreclosure and would not have seen this if we had not bought it to his attention. The main point here is, John Gibson would NOT have even know about the sales unless the Kirkpatrick’s had brought him into the process. We explained what had happened with the property and what specifically was being sold. We came to John to solicit his advice and to see if he was willing to act as our agent during the bid process. He indicated he was interested and we decided to then have a dinner meeting that same night to discuss with all three families, Mark/Cathy Kirkpatrick, Scott/Nancy Kirkpatrick and Bill/Jan Huff all of the details and all of our respective wishes. All three groups had a vested interest in pieces of what was being sold. We met and discussed a joint approach on bid day so all of us were on the same page and would end up with what we all wanted. We agreed that Huff’s would want the house, M. Kirkpatrick and S. Kirkpatrick jointly would want the rec-room and garage and forty feet of lake front adjacent to M. Kirkpatrick’s lot, John would get the other 100 feet of lake front for himself, again bordering M. Kirkpatrick’s property. We discussed the bid process and John acting as our agent to bid as one versus bidding against each other and then settle up at a later date. It is absolutely important that all parties understood the details and at NO point did John not agree to go forward as planned.
    The group, John Gibson, Mark Kirkpatrick, Scott Kirkpatrick and Bill Huff decided it made sense to meet prior to the auction, especially since mark Kirkpatrick could not attend the event. So we called a group meeting at Mark Kirkpatrick’s house for Saturday AM, August 27, 2011. The meeting went well all particulars above were once again discussed and agreed upon. We discussed what John thought the property was worth and what we should bid. The consensus was if we could stay under $100,000 the group was in agreement. The end result would be we would split the transaction into three thirds, Gibson, Huff and M. Kirkpatrick jointly with Scott. We would also split the back taxes and legal fees the same way as above after all things were settled. At NO point was there any disagreement or questions on our direction on the transaction, John Gibson was acting as our agent and or fiduciary. As we were leaving I mentioned I could not attend again the day of the auction and would send the group an email on what we agreed upon, see below for the content and I have saved the email that was sent to all parties. Dated September 7th, again the bid day was September 9th.

    With the 9th upon us I owe you all an email. I really hope this is accepted in the context I send it in. Having been associated with the lake property for as long as anyone I want to make sure that all of us fully understand both Bernice’s wishes and also mine and Scott’s father, JT Kirkpatrick. They wanted all of the property we have been discussing to stay in the Kirkpatrick family. That includes all of Kevin’s but also the woods or the 5.5 acres up above, that was in a deed we received and have been paying on for some 8 plus years. There is no mistake this is rightfully what Scott and I have expected and have been paying for over 8 years. I would hope all of us adhere to the right thing as it pertains to this.

    That being said as it deals with Kevin’s property again all of the above wishes was and as always been to keep this in the Kirkpatrick family also.
    That being said Scott and I have no problem with Huff’s obtaining the house and John, you retaining the 100 feet we have discussed, the rest will hopefully go to me and at some point to Scott. That leaves the Kirkpatrick’s with 40 feet more of lake front, the garage and rec=room and also corresponding property. If the bidding stays as we expect it, at or around $60,000, I would go to $20,000 for my piece and not to exceed $30,000 if it goes above 100,000. Let’s not lose site of the fact that anything above the opening bid goes back to Kevin/Kathy and NO ONE WANTS that based on the hell they have put us all thru.

    I wish I could be there but I cannot, please call me with any questions or concerns.


    At no point was there any add’l questions nor concerns from anyone. Once the bid was over Huff’s and Gibson moved to complete the transaction on his third and it has been closed. That same day Scott Kirkpatrick had a conversation (immediately after the bid was completed) and reminded John I was out of town and we would settle up on the dollars when I returned. Mr. Gibson indicated that was fine and there were no issues and our agreement was in order. I also called him later that day and received the same type of response. Then approximately two weeks after that John has now backed out of our agreement with NO real explanation. All of us feel that we were deceived by John Gibson and as much by the entire real estate system. We solicited help, advice and put our trust in a real estate agent from Re/Max and quite frankly were taken advantage of at the end of the day. What he has offered is to lease the property back to us. We need to know what our recourse is and how you might suggest we proceed. We will start legal proceedings but also need to know what you can do for this misconduct?
    Thank you.

    Mark Kirkpatrick
    8127 Parkridge Drive
    Parkville, MO 64152

    PS: The office that houses John Gibson is as follows:

    Contact Info
    Helen Riggins ABR, CLHMS, CRS

    Office Address

    RE/MAX at the Lake
    PO Box 1111, 147 S Main
    Laurie, MO 65038

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