HVCC Compliant

HVCC Appraisal Management

An appraisal management company (AMC) is a business entity that administers a network of certified and licensed appraisers to fulfill real estate appraisal assignments on behalf of mortgage lending institutions, as well as other entities. The AMC recruits, qualifies, verifies licensing and negotiates fees and service level expectations with a network of third-party appraisers. It also provides administrative duties like order entry and assignement, tracking and status updates, pre-delivery quality control, and preliminary and hard copy report delivery. Furthermore, it involves ongoing quality control, accounts payable and receivable, market value dispute resolution, warranty administration and record retention.

An appraisal management company, therefore, is an outsourcing that is usually paid by a lender-client to act on the lender/clients behalf to engage real estate appraisers and to perform the administrative functions involved in the appriasal ordering, tracking, and delivery process.

In its essence, an "appraisal management company" means any corporation, partnership, sole proprietorship, subsidiary, unit, or other business entity that:
i. Administers networks of independent contract appraisers to perform residential real estate appraisal services for clients;
ii. Receives requests for residential real estate appraisal services from clients and, for a fee paid by the client, enters into an agreement with one or more independent appraisers to perform the residential real estate appraisal services contained in the request; or
iii: Otherwise serves as a third-party broker of residential appraisal management services between clients and appraisers. order in, order through, order out.

HVCC Guidelines

The Federal Housing Finance Agency (FHFA) has formally announced the final version of the Home Valuation Code of Conduct (HVCC) to be implemented by May 1, 2009.

The revised Code builds on existing Fannie Mae and Freddie Mac seller-servicer guidelines to increase the reliability of appraisals for loans sold to the Enterprises for their portfolios or for securitization. The Code applies to lenders that sell single-family mortgage loans to the Enterprises beginning May 1, 2009 and will help assure that borrowers, homebuyers and secondary mortgage market investors receive fair and independent property valuations.

"The Enterprises have a strong interest in ensuring the soundness of the appraisal practices that lead to appraisal reports supporting the mortgage loans they purchase from lenders," said Director Lockhart. "FHFA supports this effort by the Enterprises to strengthen the appraisal process against the possibility of improper influence and coercion. The Code strikes a balance of assuring enhanced protections for appraisers while maintaining lender ability to address unprofessional appraisal practices and to perform quality controls on appraisals received. I appreciate the work of Fannie Mae and Freddie Mac on the Code and of the Attorney General's Office throughout the process." Fannie Mae and Freddie Mac will be providing information on the Code to market participants in early January to address implementation questions in advance of the May 1, 2009 effective date.

HVCC.pdf

HVCC FAQ.pdf

LCI Certificate of Non Influence and HVCC Compliance

LCI Compliance Process