As of May 1st, 2009 the HVCC governs appraisals for all loans delivered to Fannie Mae and Freddie Mac. The HVCC attempts to create a buffer between the appraiser and the loan production staff of the lender.
Following are some significant aspects of the HVCC:
Attempting to influence the development, reporting, or result of an appraisal is prohibited.
The appraiser can notbe selected, retained, or compensated in any manner by any third party (including mortgage brokers and real estate agents).
Providing an appraiser an anticipated, estimated, encouraged, or desired value for a property or a proposed target loan amount is not allowed, except that a copy of the sales contract for purchase transactions may be provided.
The HVCC bars lenders from ordering "comp checks" without engaging an appraiser in an appraisal assignment. No party on behalf of the lender shall request that an appraiser provide estimated values or comparable sales at any time prior to the appraiser's completion of an appraisal report.
The HVCC prohibits the appraiser from collecting payment for the appraisal directly from the borrower.
The lender may not withhold timely payment for an appraisal report.
