In lieu of funding an Independent Valuation Protection Institute (IVPI), Fannie Mae and Fredddie Mac will deploy a complaint process for violations of the Home Valuation Code of Conduct, the government-sponsored enterprises' (GSEs) conservator announced Thursday.
Federal Housing Finance Agency (FHFA) Acting Director Edward J. DeMarco, in a letter to New York Attorney General Andrew Cuomo, said the complaint process will address suspected code violations, including a mechanism for providing pertinent information to state and federal regulatory and enforcement departments. The process will be put in place within the next few weeks.
Prior to entering conservatorship, the GSEs formed an agreement with Cuomo's office that, in addition to establishing the HVCC, called for Fannie and Freddie to establish and fund the IVPI, which would collect and report on complaints regarding appraisals.
‘In light of the billions of dollars in taxpayer funds the enterprises have drawn since entering conservatorships, I cannot, as conservator, justify the enterprises funding the institute,’ DeMarco wrote to Cuomo. ‘Therefore, as conservator, I have determined that they will not proceed with that portion of the cooperation agreements.’
In a statement Thursday, DeMarco said the FHFA views the newly announced complaint process as more practical than the institute in terms of policing appraisal-code violations.
SOURCE: Federal Housing Finance Agency