halfnote19_IHB
New member
<a href="http://'http://www.freddiemac.com/singlefamily/home_valuation.html'">Home Valuation Code of Conduct</a>
For those not aware new rules have been implemented starting May 1st that are very beneficial to the consumer but bad for the individual appraiser.
Here are some major points
- Lenders are required to provide the borrower with a copy of each appraisal report a minimum of three days prior to closing, unless the borrower waives this three-day requirement.
- A complete, unaltered copy of the appraisal report must be provided to the borrower.
- The Code prohibits lenders from relying on an appraisal where the broker/agent had a role in selecting, retaining, or compensating the appraiser
- appraiser communication with the loan production staff that relate to or have an impact on valuation are not permitted under the Code
- Freddie Mac will treat breaches of the Code the same as any other breach of a Seller?s representations and warranties. This could include suspension or termination of the lender?s eligibility to sell loans to Freddie Mac if the lender fails to remediate violations.
For those not aware new rules have been implemented starting May 1st that are very beneficial to the consumer but bad for the individual appraiser.
Here are some major points
- Lenders are required to provide the borrower with a copy of each appraisal report a minimum of three days prior to closing, unless the borrower waives this three-day requirement.
- A complete, unaltered copy of the appraisal report must be provided to the borrower.
- The Code prohibits lenders from relying on an appraisal where the broker/agent had a role in selecting, retaining, or compensating the appraiser
- appraiser communication with the loan production staff that relate to or have an impact on valuation are not permitted under the Code
- Freddie Mac will treat breaches of the Code the same as any other breach of a Seller?s representations and warranties. This could include suspension or termination of the lender?s eligibility to sell loans to Freddie Mac if the lender fails to remediate violations.