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HVCC and Financial Reform

In response to the collapse of the housing bubble and to avoid future litigation that was being pursued the former Attorney General of New York, the GSE’s (Fannie Mae and Freddie Mac) adopted the HVCC with little public or industry input.  The Home Valuation Code of Conduct (HVCC) establishes standards for solicitation, selection, compensation, conflicts of interest and appraiser independence. It is effective May 1, 2009, for any mortgage that will be sold to Fannie Mae or Freddie Mac; Federal Housing Administration (FHA) and Federal Home Loan Bank (FHLB) mortgages are not covered in the agreement.

Home Valuation Code of Conduct

In part because Congress was bypassed through the implementation of HVCC, they sought to once again gain control of the business practices of Fannie Mae and Freddie Mac through the Dodd-Frank Financial Reform Act.

Below is the entire act.  The portion of the act that affect appraisers begins at Section 1471.

Financial Reform Act

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