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The Independent Valuation Protection Institute
excerpts from the revised HVCC
An Independent Valuation Protection Institute (Institute) shall be created as approved by the parties. Subject
to section IX, when the Institute is established, the lender will provide information to appraisers and borrowers
regarding the availability of the Institute's services, which are expected to include:
(1) a telephone hotline and email address to receive any complaints of Code of Conduct non-compliance,
including complaints from appraisers, individuals, or other entities concerning the improper influencing or
attempted improper influencing of appraisers or the appraisal process, which the Institute will review and
report as provided in IV.B(8) and IV.C(2) of this Code of Conduct; and
(2) the publication and promotion of best practices for independent valuation. The lender shall not retaliate,
in any manner or method, against the person or entity that makes a complaint to the Institute.
In underwriting a loan, the lender shall not use an appraisal report prepared by an entity that is affiliated with,
or that owns or is owned, in whole or in part by, another entity that is engaged by the lender to provide other
settlement services, as that term is defined in the Real Estate Settlement Procedures Act, 12 U.S.C.§ 2601 et
seq., for the same transaction, unless the entity that provides the appraisal:
(1) has adopted written policies and procedures implementing this Code of Conduct, including, but not limited
to, adequate training and disciplinary rules on appraiser independence (including the principles detailed in
this Code of Conduct) and has mechanisms in place to report and discipline anyone who violates these
policies and procedures;
(2) recognizes that, once the Independent Valuation Protection Institute is established, the Institute will
receive complaints for review and referral regarding non-compliance with the Code of Conduct. Referrals and
reports shall be made to Fannie Mae and/or Freddie Mac regarding such complaints and the Institute will
provide information on the results of its review of such complaints to Fannie Mae and/or Freddie Mac and
make them available to the other parties to the Home Value Protection Program and Cooperation Agreement.
Representations and Warranties
A lender shall certify, warrant, and represent that the appraisal report was obtained in a manner in
compliance with this Code of Conduct. If the Enterprise determines, on its own or from a referral made by the
Independent Valuation Protection Institute, that a lender is in breach of a material aspect of this Code of
Conduct or in violation of a provision of the Code by a complaint referred from the Institute, the Enterprise will
enforce all applicable rights and remedies, including suspension or termination of the lender’s eligibility to sell
loans to the Enterprise, if the lender fails to remediate.
FHFA ANNOUNCES HOME VALUATION CODE OF CONDUCT
Washington, DC – Federal Housing Finance Agency (FHFA) Director James B. Lockhart
announced that Fannie Mae and Freddie Mac will implement a revised Home Valuation Code
of Conduct (Code) effective May 1, 2009. The Code is based on an agreement between the
Enterprises, the New York State Attorney General Andrew Cuomo and FHFA to improve the
reliability of home appraisals.