Home Valuation Code of Conduct (HVCC)

Mortgage brokers & Lenders:

Can a Lender still order an appraisal direct from an Appraiser? Yes! See Question 35 of the Fannie Mae Fact Sheet: here

What about mortgage brokers? Can a mortgage broker order an appraisal direct from an appraiser? No!

Effective 1 May 2009, Fannie Mae & Freddie Mac began no longer accepting appraisals which were ordered directly from the appraiser by a Mortgage Broker. See Question 41 of the Fannie Mae Fact Sheet: here

Can you still collect a check at the door?

Q15. Does the Code prohibit an appraiser from collecting payment for the appraisal directly from the borrower?

Yes, for loans to be delivered to Fannie Mae. The Code requires the lender or any third party specifically authorized by the lender to select, retain, and provide for all compensation to the appraiser.

The Home Valuation Code of Conduct (the Code) is the result of a joint agreement between Fannie Mae, 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.

Effective May 1, 2009, Fannie Mae & Freddie Mac will no longer purchase mortgages from Sellers that do not adopt the Code with respect to single-family mortgages that are delivered to Fannie Mae & 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.

The sale of the following mortgages is excluded from the representation and warranty: FHA/VA Mortgages, Section 184 Native American Mortgages, and Section 502 Guaranteed Rural Housing Mortgages.

Freddie Mac HVCC Fact Sheet: here

Fannie Mae HVCC: here

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