To sign up for a dirctory of over 300 AMC's go to www.amc300.com
In order to curb some undesirable effects of the residential appraisal process Fannie Mae adopted an agreement that went into effect May 1, 2009. The code only applies to all single family loans, up to 4 units, that are sold to Fannie Mae. The code does not apply to multi-family homes or to loans that are guaranteed or insured by a federal agency. Beginning in 2010, a version of the HVCC will be adopted by FHA. Although some of the rules will be different, most will be identical to the original HVCC.
Is this change permanent?
As of this moment, yes, although there are several bills in congress waiting to be heard. Specifically, one bill that requests the HVCC rules be reversed, and another that would postpone implementation for 18 months.
Does the new code require lenders to obtain an appraisal?
No, a lender is under no obligation to obtain an appraisal. Also, the code does not specify the scope of work necessary for particular assignments.
Can appraisers still be “blacklisted”?
Yes, an appraiser can still be blacklisted if impropriety is involved, such as influencing or trying to influence appraisal outcome. Also, the lenders are required to policies and procedures in place that can be followed that include mechanisms to report and discipline.
Can a lender still order a second appraisal?
Yes, as long as the lender is not value-shopping, or trying to influence the outcome of the appraisal.
Can an appraiser still communicate with the real estate agent?
Yes. This is not prohibited by the HVCC.
Is the Lender required to provide the borrower with a copy of the appraisal, and what is the time frame for providing the copy?
Yes. The lender must provide a copy, if requested, upon completion of the appraisal, but no less than three business days prior to closing. The lender can send the appraisal via email or mail.
Can the appraiser collect payment directly from the borrower?
No. The appraiser must collect fees from the lender or a third party authorized by the lender.
Does the Code apply to AVM’s, BPO’s or tax assessments?
No, the Code applies only to appraisals.
Can a lender use a selected group of appraisers through an appraisal management company?
Yes, as long as all aspects of HVCC rules are followed.
Does the Code apply to Form 2075?
No, Form 2075 is an inspection report. It is not an appraisal, and therefore the Code does not apply.
How does Fannie Mae audit compliance with the Code?
Compliance with the Code will be part of the lenders’ operational review.
Is the definition of application date the actual date of the application or the date of receipt of the application by the lender?
The application date is defined as the date the borrower(s) signed the application certifying that the information is correct.
May an appraiser use foreclosure data?
The Code does not mention foreclosure data. It is the appraisers responsibility to decide if the information is applicable or not.
Do HVCC rules apply when trying to remove PMI?
No. The rules only apply for a “mortgage financing transaction”.
Are there rules regulating how appraisers are chosen off an ordering list?
The lender may choose how its systems are run, as long as they abide by HVCC guidelines.
May in-house appraisers prepare appraisal reports?
Yes, in-house appraisers may prepare appraisal reports.
Can a lender’s in house appraiser adjust the value of a loan?
Yes, this is not prohibited by the code.
May a correspondent lender use in-house appraisers?
Yes, as long as they comply with the Code.
Can a lender dictate to a broker which AMC is to be used?
Yes, as long as the lender has prearranged an agreement with the AMC.
May a lender accept an appraisal prepared by an appraiser that was ordered by a mortgage broker?
No. The appraisal may not be ordered directly from the mortgage broker.
Can the broker request that the lender use specific appraisers for orders from that particular broker?
No.
Can a broker order an appraisal from the AMC if it was authorized by the lender?
No.
Can a broker choose the appraiser from the lenders list of approved appraisers if the lender is the one to place the order?
No.
Can an appraisal be transferred from one lender to another?
Yes, as long as it complies with the HVCC code.
Can the borrower pay the AMC for the appraisal?
Yes. The borrower is prohibited from paying the appraiser directly.
Who is allowed to communicate with the appraiser?
Anyone who is not compensated by commission, anyone not part of the loan production staff, or anyone who does not report to officers or loan production staff.
- Related Videos
- Related Articles
- Ask / Related Q&A
4 Quick Tactics to Build Your Average Dollar Store Sales Size
By: Bob Hamilton | 23/11/2009One of your challenges is to constantly grow the dollar store sales for your business. Somehow you must take the right actions to make this happen. It doesn’t matter whether it is achieved by adding higher quality dollar store merchandise, or the hottest, new impulse items, or by starting a huge radio and television advertising campaign. The important result is that sales climb ever higher in a cost-effective way.
Don’t Forget the Basics when you Own a Dollar Store
By: Bob Hamilton | 23/11/2009One of the big challenges for those who own a dollar store is staying true to the very basic actions that helped them build a successful business. However, for many the challenge becomes developing methods to continually build dollar store sale levels and dollar store profits to new heights. In their haste to try new techniques some forget about the basic actions that put them on the road to success.
3 Ways to Build Dollar Store Sales with More Shoppers
By: Bob Hamilton | 23/11/2009One of the fastest methods for increasing dollar store sales when you start a dollar store is by increasing the traffic entering your store. While many visitors who enter your store for the first time may make only a small purchase or no purchase at all, higher traffic sets the stage for higher future sales. After all, if you create the right shopping experience for your first time shoppers, they will come back time and again.
Replenishment Dollar Store Merchandise Orders are Critical to Success
By: Bob Hamilton | 23/11/2009When these extra sales occur a store that looked like it was filled to the ceiling on one day can suddenly appear to be nearly empty. It is important to maintain a steady in-flow of replenishment merchandise from your dollar store suppliers to help handle these cases. It is also important to immediately respond with orders for the most in-demand merchandise.
Maintain your Balance when you Own a Dollar Store
By: Bob Hamilton | 23/11/2009If you own a dollar store that is far enough along the revenue growth process to support additional headcount, then adding a store manager is worth examining. Just be sure the dollar store profits can support the extra payroll expense and don’t stop looking until you have a manager who brings excellent knowledge about retailing and the dollar/discount industry. Don’t forget the importance of finding someone who shares your core values as well.
Sky Dancers can get customers to your retail business
By: AnneMing | 23/11/2009Our eyes are naturally drawn to objects that are big, colorful and/or moving. That’s why our inflatable dancers are so effective in drawing clients to any event – they make your business the center of attention.
Bounce House Rental Business – Your Part Time Gig
By: AnneMing | 23/11/2009Today, more and more individuals are learning they can make money utilizing the extra space in their garage to store bounce houses.
Choosing a Lanyard - Five Styles of Lanyards For Every Organization
By: Jeff McRitchie | 23/11/2009If you need lanyards for your employees, volunteers, or visitors, chances are you're curious about what options are available. Once upon a time, it was difficult to find a lanyard that was any color but black with an attachment other than a nickel-plated swivel hook.
Top 5 Reasons to Buy an Appraisal Management Company List
By: Bill Bledsoe | 13/11/2009 | Small BusinessWhile some appraisers are still receiving jobs regardless of new HVCC regulations, this is the exception and not the rule. It has become necessary for most appraisers to sign up with appraisal management companies just to stay alive in today's market. While some of the larger AMC's can have major problems or drawbacks, there are hundreds of smaller AMC's that provide great customer service and are respectful to all parties involved.
Signing Appraisal Management Company Contracts
By: Bill Bledsoe | 13/11/2009 | Small BusinessWith hundreds of appraisal management companies available vying for both appraisers and lenders, it has become necessary for them to create contracts that both protect and harm the appraiser who is forced to sign them. This article will explain the major concern in these contracts, indemnity clauses, and what appraisers can do to protect themselves.
HVCC Frequently Asked Questions (FAQs)
By: Bill Bledsoe | 13/11/2009 | Small BusinessHVCC rules can be a bit confusing, especially when updates change the rules and the internet is inconsistent in its information. This articles will answer many of the questions appraisers have about appraisal management companies and the lenders who hire them.