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Home Valuation Code of Conduct (HVCC) Overview
Fannie Mae and Freddie Mac implemented the HVCC on May 1, 2009.
HVCC Impact: Appraiser Selection
All members of the lender’s loan production staff are forbidden from selecting, retaining, recommending or influencing the selection of an appraiser.
Loan production staff consists of:
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Individuals who are involved in origination, underwriting, presenting credit offerings
for approval and credit decisioning
Any person who reports to a loan production staff member or is compensated on a
commission basis upon the successful completion of a loan
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SettlementOne Solution:
Submit your list of trusted appraisers into our appraisal management system and appraisers
will be selected in a random rotation.
HVCC Impact: Quality Control on Appraisals
Lenders agree to perform quality control tests on at least 10% of appraisals by use of retroactive or additional appraisal reports or other appropriate method.
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The quality control testing must be performed on randomly selected appraisals
The lender must report the findings of the quality checks to the Independent
Valuation Protection Institute (IVPI)
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SettlementOne Solution:
Automatic quality control testing is performed on 10% of your appraisals through broker price
opinion, desktop review or automated valuation models.
HVCC Impact: Hotline Notification
Lenders must notify appraisers and borrowers of the IVPI’s telephone and email hotline for complaints concerning any improper or attempted improper influence on appraisers or the appraiser process.
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Lenders must notify every appraiser of the hotline in a separate letter
Each borrower must be notified of the hotline in a cover letter accompanying the
appraisal
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SettlementOne Solution: Each borrower and appraiser on rotation are contacted on behalf of the lender and provided the required letter of notification.
For more information on the HVCC or SettlementOne’s National Appraisals call (800) 340-2009.
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