Fannie Mae and Freddie Mac are maintaining their ban on loan officers and mortgage brokers getting involved in the appraisal process, even though the Federal Reserve recently loosened its position on the issue.
The GSEs made their position clear when they issued a new Home Valuation Code of Conduct standard late last week.
"The Appraiser Independence Requirements maintain the spirit and intent of the HVCC and continue to provide important protections for mortgage investors, home buyers and the housing market," Fannie says in an Oct. 15 notice (SEL-2010-14) to its seller/servicers. "This announcement is effectively immediately."
In July, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which called for the HVCC to sunset on Nov. 1.
Fannie and Freddie worked with their regulator in crafting the new standards but did not publicize its release. Freddie briefly noted the change in Bulletin # 2010-23, and issued guidance in a "question and answer" format.
One Q&A indicates a mortgage broker can transfer an appraisal "prepared by Lender A to Lender B who may offer better terms."
This assumes the "mortgage broker has no control over, or involvement in the appraisal assignment," the Q&A says.
