Members - Hot Topics - Buyer Incentives - MIBOR | Metropolitan Indianapolis Board of REALTORS®

HVCC
Buyer Incentives
IAR Economic Digest
Foreclosure Study
Predatory Lending Law Review
Trademark Information
Mold
RESPA
2009 Profile of Home Buyers and
Sellers - Central Indiana Report

Home Valuation Code of Conduct (HVCC)

HVCC Clarification

What is HVCC?
The Home Valuation Code of Conduct (HVCC) is the result of a joint agreement between Freddie Mac, the Federal Housing Finance Agency (FHFA) and the New York State Attorney General to enhance the independence and accuracy of the appraisal process, and provide added protections for homebuyers, mortgage investors and the housing market.

The HVCC was implemented nationally on May 1, 2009. As of that date, Freddie Mac no longer purchases mortgages from Sellers that do not adopt the Code with respect to single-family mortgages that are delivered to Freddie Mac.

Also, effective for single-family mortgages with loan application dates on or after May 1, 2009, Freddie Mac seller/servicers must represent and warrant that the appraisal report is obtained in a manner consistent with the Code.

Exclusions include: FHA/VA Mortgages, Section 184 Native American Mortgages, and Section 502 Guaranteed Rural Housing Mortgages.

For REALTORS®: How HVCC Affects the Appraisal Process

REALTORS® and mortgage brokers are prohibited from selecting appraisers. However, the HVCC does not prevent a broker or salesperson from speaking with an appraiser about an appraisal. Lenders may use “in house” staff appraisers to conduct appraisals. However, the loan production staff is prohibited from:

selecting, retaining, recommending, or influencing the selection of an appraiser; and,

conducting any substantive conversation with an appraiser or appraisal management company regarding the appraisal assignment.

In April, MIBOR convened a focus group of Appraisers to discuss the Home Valuation Code of Conduct and its impact on member transactions, specifically in the area of appraisals. Appraiser and REALTOR®, Carl Heckman, SRA, provided summary and analysis of the “HVCC”. Click here to read more.

For Consumers:

For the consumer, the appraisal process has remained largely intact. However, consumers may find the process takes longer than in the past.

Click here to download the Home Valuation Code of Conduct. Click on the following links for more information:

Submit a question to Freddie Mac: Home Valuation Code of Conduct Inquiry Form
Find contact information for state appraiser licensing and certification boards
Call your Freddie Mac representative, 800-FREDDIE

Click on the following links for more information from the National Association of REALTORS®:

Sources: Freddie Mac®, National Association of REALTORS®