HVCC UPDATE

The "Home Valuation Code of Conduct" or HVCC Legislation is a hot topic of conversation these days in the mortgage industry. This legislation will require some changes in the way that many mortgage brokers do business with appraisers. North Atlantic is fully informed of all requirements of the new law. We have taken the initiative to ensure that when you order appraisal reports with North Atlantic Appraisal Management, you are in complete compliance with HVCC.

FREQUENTLY ASKED QUESTIONS:

1) WHAT IS THE HVCC?

The "Home Valuation Code of Conduct" is a document written by the New York Attorney General (Andrew Cuomo) and OFHEO (among others) that establishes specific rules regarding the interaction of the lending industry with appraisers. Essentially, the legislation is geared toward ensuring appraiser independence by removing potential for "influence" on appraisal report values.

2) WHEN WILL IT TAKE EFFECT?

It is scheduled to be adopted on residential loans sold to Fannie Mae or Freddie Mac that are originated on or after May 1, 2009. After the HVCC is in place, Fannie and Freddie will not purchase loans from any bank/lender that does not adhere to the code of conduct.

3) HOW DOES HVCC AFFECT ME AS A LENDER or BROKER?

Essentially the HVCC states that no one who is compensated upon the closure of a loan is allowed to communicate with the appraiser. This includes the entire loan production staff as well as the broker or lending officer.

4) IS NORTH ATLANTIC IN COMPLIANCE WITH HVCC?

Absolutely! When you contact North Atlantic Appraisal Management, you will never speak with an appraiser. You will communicate only with administrative or managerial staff members. We are committed to providing you the assurance of compliance with HVCC in all aspects of the appraisal process.

With one phone call, our lenders have access to the appraisal expertise of North Atlantic's 50 independent appraisers who are available to complete appraisal work for you quickly, reliably, and in full compliance with HVCC.