Washington, DC - Fannie Mae and Freddie Mac will deploy a complaint process for violations of the Home Valuation Code of Conduct (HVCC), according to a letter from FHFA Acting Director Edward J. DeMarco to New York Attorney General Andrew Cuomo. The letter, which outlines developments with the HVCC and related agreements, states that Fannie Mae and Freddie Mac, now in conservatorship, will not be funding the Independent Valuation Protection Institute (IVPI).
"As conservator of Fannie Mae and Freddie Mac, our priority is to keep the Enterprises focused on the important role they play in supporting the mortgage market," said DeMarco. "The need for a complaint process is being addressed in a way that we believe is more practical than with the Institute."
Fannie Mae and Freddie Mac will deploy a complaint process to address suspected code violations including a mechanism for providing pertinent information to state and federal regulatory and enforcement departments. The process will be put in place within the next few weeks.
The letter from FHFA to Attorney General Cuomo also addresses some of the benefits the HVCC has brought to the appraisal process including insulating appraisers from undue pressure.
"The Code has improved the independence of the valuation process-a critical element in assuring homeowners pay a fair price for properties and that investors have confidence in mortgages backing securities they purchase," said DeMarco. "The Code has also aided efforts to combat mortgage fraud, a leading contributor to the housing finance crisis."