May 1st is a big day. Not only are the new ARMLS rules going into effect, but Freddie Mac is implementing their new Home Valuation Code of Conduct. Barb Freestone from the Arizona Association of REALTORS® gave us a heads up on the soon to be changes. Thanks Barb for keeping all of us in the loop on what’s going on out there.
Enhancing the independence of appraisers
The Home Valuation Code of Conduct (the Code) is the result of a joint agreement between Freddie Mac, the Federal Housing Finance Agency (FHFA), and the New York State Attorney General to enhance the independence and accuracy of the appraisal process, and provide added protections for homebuyers, mortgage investors and the housing market.
Effective May 1, 2009, Freddie Mac will no longer purchase mortgages from Sellers that do not adopt the Code with respect to single-family mortgages that are delivered to Freddie Mac. Also, effective for single-family mortgages with loan application dates on or after May 1, 2009, Freddie Mac Seller/Servicers must represent and warrant that the appraisal report is obtained in a manner consistent with the Code.
The sale of the following mortgages is excluded from the representation and warranty: FHA/VA Mortgages, Section 184 Native American Mortgages, and Section 502 Guaranteed Rural Housing Mortgages. For more information:
- Download the Home Valuation Code of Conduct fact sheet
- Download the Home Valuation Code of Conduct
- Visit The Learning Center for Home Valuation Code of Conduct training resources, including the recorded webinar session.
The HVCC also applies to any loans sold to Fannie Mae, not just to Freddie Mac.
[...] HVCC goes into effect May 1st. [...]