Fannie Mae and Freddie Mac will implement a revised Home Valuation Code of Conduct effective May 1, 2009, Federal Housing Finance Agency Director James B. Lockhart says.
The code is based on an agreement between the government-sponsored enterprises (GSEs), New York State Attorney General Andrew Cuomo and the FHFA to improve the reliability of home appraisals. Following a comment period on the original code, modifications were made by the GSEs to reflect comments received. The revisions will facilitate implementation in the marketplace.
The revised code builds on existing Fannie Mae and Freddie Mac seller-servicer guidelines to increase the reliability of appraisals for loans sold to the GSEs for their portfolios or for securitization. The code applies to lenders that sell single-family mortgage loans to the GSEs beginning May 1, 2009, and is designed to help assure that borrowers, home buyers and secondary mortgage market investors receive fair and independent property valuations.
Fannie Mae and Freddie Mac will be providing information on the code to market participants in early January to address implementation questions in advance of the code's starting date.
SOURCE: FHFA