HVCC is driving off into the sunset!

Mortgage and Lending with Wholesale Mortgage Services Individual NMLS ID 331194

Selling Notice: New Appraiser Independence Requirements Being Developed

Fannie Mae has issued the following Notice


Fannie Mae is working with the Federal Housing Finance Agency (FHFA) to develop and adopt appraiser independence requirements that will replace the Home Valuation Code of Conduct (HVCC). Until the revised requirements are released, the existing HVCC provisions in the Fannie Mae Selling Guide continue to apply. Updated requirements are expected to be substantially similar to the current provisions.


Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, HVCC will sunset when interim final regulations are released to implement the appraisal independence-related provisions of the Act, which is expected to occur on or about October 21, 2010.


Fannie Mae is committed to supporting strong appraiser independence requirements. The revised requirements will maintain the spirit and intent of HVCC, and continue to provide important protections for mortgage investors, home buyers, and the housing market.


The revised appraiser independence requirements will be based on Fannie Mae's experience under the HVCC and will continue to support the integrity of the appraisal process. As part of the process to develop the revised requirements, Fannie Mae has received input from key industry participants.


Fannie Mae expects to announce the revised appraiser independence requirements in an upcoming Selling Guide announcement.

I'm not sure what this means for the appraisal process moving forward, but hopefully it will be an improvement over the exisitng system. Stay Tuned!

Here is a link to the actual announcement: https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2010/ntce091710.pdf

Comments (5)

Francois Gregoire
Gregoire & Gregoire, Inc. - Saint Petersburg, FL
Appraiser-Expert Witness


Don't get your hopes up. Expect more of the same when the new rules are developed and released.


Sep 18, 2010 12:11 AM
Eddie Reed
Guaranty Bank and Trust Co. - Hernando, MS

My guess is that nothing changes.  FNMA's changes will probably just require ANOTHER form, like we need more of those. 

Sep 23, 2010 04:03 AM
Joseph Mazzei
Wholesale Mortgage Services - Tampa, FL
Why pay retail you you can get it Wholesale?

Francois and Eddie, i understand your pessimism. I am just glad that that the HVCC will no longer be in effect, and i am somewhat optimistic that it will be a good thing, compared to what we are experiencing now.

I cant begin to tell you how many unneccessary appraisals have ben ordered because we brokers can not talk to an appraiser about value. millions of dollars wasted on useless appraisals. i have heard many instances where a borrower spent $450 they didnt have to spare on an appraisal that came in too low. this is especially true for companies that do out of state lending and dont know the area as far as values go.

i can honestly say i never asked an appraiser to 'push' value in order to make a deal work. i know that is/was not the norm. there has got be a better way to police the industry, and sunsettting HVCC is a step in the right direction.

Sep 23, 2010 04:22 AM
Craig Chapman
Call Realty / Access Appraisals - Mesa, AZ
The Value Guy

I read that some of the requirements in the HVCC are also in new requirements. Some of that is good.  I also hear from some lenders that they may be looking into leaving the AMC format of ordering in order to do it themselves & save money. Sounds like a good idea to consider.

Dec 14, 2010 12:24 PM
Joseph Mazzei
Wholesale Mortgage Services - Tampa, FL
Why pay retail you you can get it Wholesale?

craig, the new appraiser independence requirements are out and available on fannie mae's website. i still beleive that not being able to talk to my appraiser is not the answer, but only time will tell.

Dec 15, 2010 03:31 AM

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