Home Valuation Code of Conduct

4 May

Although the agreement originated in New York, HVCC has no geographic limitations.  Therefore, once in effect it will apply to certain appraisals that are performed in the State of Minnesota.  One limitation of HVCC is that it only pertains to 1 to 4 single-family loans that mortgage originators sell to Fannie Mae or Freddie Mac.  Furthermore, HVCC does not apply to loans that are insured or guaranteed by a federal agency (e.g. FHA or VA loans).  For answers to some of the most frequently asked questions regarding HVCC, please see https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/appcode/pdf/hvccfaqs.pdf or http://www.freddiemac.com/singlefamily/hvcc_faq.html#2

 Once HVCC takes effect an Independent Valuation Protection Institute is supposed to be established to implement and monitor the new appraisal standards created through HVCC.  One of the purposes of the Independent Valuation Protection Institute is that it will allow appraisers to report situations that compromise their independent valuation(s) of a property and compliance with HVCC.  The Independent Valuation Protection Institute will also provide a hotline number and email address for consumers to contact if they believe the appraisal process has been tainted or appraisal fraud has occurred. For more information on the Independent Valuation Protection Institute see http://www.independent-valuation-protection-institute.org

This blog entry is written by Dave McGee and Deb Newel.  Deb is an Associate at Thomsen & Nybeck, P.A. and practices in the litigation area of the firm with primary focus on General Civil Litigation, Real Estate Litigation, Insurance Litigation, Construction Litigation and Townhome and Condominium Law.  Dave is a Shareholder at Thomsen & Nybeck, P.A. who also practices in the litigation area of the firm.  Dave’s practice focuses primarily on General Civil Litigation, Commercial Litigation, Construction Litigation, Insurance Litigation, Real Estate Litigation, as well as Real Estate Law, and Townhome and Condominium Law.


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