On October 15, 2010, the government sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, announced appraisal independence requirements to replace the Home Valuation Code of Conduct. The new requirements offer no significant changes to the core principles of HVCC. An appraiser may not be selected or retained by mortgage brokers and real estate agents. More specifically, lenders mortgage production staff, any person compensated on a commission basis upon the successful completion of the mortgage, and any person whose immediate supervisor is not independent of mortgage production staff, is prohibited from ordering the appraisal. Lenders must still separate mortgage production functions from appraisal functions. The borrower is entitled to a copy of the appraisal report no less than three days prior to closing. The new standards include language permitting appraisal portability assuming the appraisal continues to meet the independence standards.
Fannie Mae Appraiser Independence Requirements >
Fannie Mae Announcement SEL 2010-14 >
Freddie Mac Appraiser Independence News Release >
Freddie Mac Bulletin 2010-23 >
Contacts: Jerome Nagy, 202-383-1233
Contacts: Tony Hutchinson, 202-383-1120
Contacts: Jeff Lischer, 202-383-1117