New Home Value Protection Code
March 3, 2008, New York Attorney General Cuomo announced an agreement with Fannie Mae, Freddie Mac, and the Office of Federal Housing Enterprise Oversight (OFHEO). As a result the nation’s two largest purchasers of home loans agree to only buy mortgages from banks that meet the requirements of New Home Value Protection Code (HVPC). The HVPC will monitor and regulate appraisal selection, communication, solicitation, conflicts of interest and promote appraiser independence. Banks will be required to adhere to the code beginning January 1, 2009. Fannie Mae and Freddie Mac will require that lenders represent and warrant that appraisals related to mortgage loans originated on or after January 1, 2009 conform to the code or they will not be purchased. Press Release Here
This agreement stems from the lawsuit filed against First America and its subsidiary EAppraiseIT for conspiring with Washington Mutual to inflate real estate values. Fannie Mae and Freddie Mac were subpoenaed in the lawsuit, announced on November 1, 2007, detailing a scheme showing First American and eAppraiseIT caving in to pressure from Washington Mutual to use appraisers who provided inflated appraisals on homes. Press Release Here
Click here for our fact sheet on how OASIS ensures compliance within Federal and the new GSE requirements
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