If you have any questions or need more detailed information, please feel free to contact me via phone at 617.232.4186 or fill out the form to let us know how we can help with your real estate needs.
New Rules Governing Appraisals- Home Valuation Code of Conduct
The code prohibits mortgage brokers originating loans to be purchased by Freddie Mac or Fannie Mae from ordering appraisals directly. Loan officers working for banks must delegate the process of ordering appraisals to other in-house staff or go through an appraisal management company.
There are currently 1 blog entries related to this category.
Saturday, July 11th, 2009 at 4:54pm.180 Views, 0 Comments.
On May First The Home Valuation Code of Conduct went into effect for loans to be purchased or guaranteed by Fannie Mae and Freddie Mac that are not jumbo loans. The code grew out of a lawsuit by New York Attorney General Andrew Cuomo alleging that an appraisal management firm allowed lender Washington Mutual to hand-pick appraisers.
The code has prohibited mortgage brokers originating loans to be purchased by Freddie or Fannie from ordering appraisals directly. It also required loan officers working for banks and other lenders to delegate the process of ordering appraisals to other in-house staff or go through an appraisal management company.
The code does not require that lenders such as banks use appraisal management firms; they are still allowed to hire…
