Broker Tools > Appraisals > HVCC Policy

I. HOME VALUATION CODE OF CONDUCT (HVCC)
In December 2008 the Federal Housing Finance Agency approved the Home Valuation Code of Conduct (Code) to be implemented May 1, 2009. The code modifies Fannie Mae and Freddie Mac seller-servicer guidelines to improve the reliability of home appraisals and to restore appraiser independence. The aim of the code is to assure that all parties involved in the mortgage market will receive fair and independent property valuations. Among other changes, the code sets in place new rules and regulations governing:

The process for ordering appraisals
Appraiser independence
Improper influences on appraisers

View a copy of the code faq in its entirety

II. NEW APPRAISAL REQUIRMENTS EFFECTIVE MAY 1, 2009
In response to the Home Valuation Code of Conduct (HVCC), USA Direct Funding will be making significant changes to our appraisal policy, specifically in terms of how the appraisals must be ordered. These changes are being made to ensure our compliance with the modified versions of Fannie and Freddie’s seller-servicer guides.

Effective for all conventional loans with applications dated and in an Application Received Status with USA Direct Funding on or after May 1, 2009, USA Direct Funding will require all appraisals to be ordered through our new appraisal order screen on our website.
Initiating the appraisal in this manner will ensure that we are in compliance with the Code; the appraisal will be delivered by our Appraisal Management Company (AMC) to USA Direct Funding and the broker. The appraisal will be the name of USA Direct Funding as required by the code.
This change applies to all USA Direct Funding brokers.

III. FHA / VA / USDA / CHM (Gov’t Loans)
Though the code itself does not address government loans, USA Direct Funding will continue to review our internal policies as we determine how this new standard of appraisal ordering affects our internal procedures. When the code becomes effective May 1, 2009, USA Direct Funding will not immediately mandate HVCC compliance on government loan appraisals.
Once the code goes into effect, and we receive an opportunity to better measure its effectiveness and efficiencies, we plan to expand the HVCC compliance requirements to include government loans. We expect to implement these requirements before the end of the year.

IV. HVCC COMPLIANT APPRAISAL ORDERING —
In response to the Home Valuation Code of Conduct, USA Direct Funding has built an automated appraisal system through our website: www.USADirectFunding.com . Through USA’s new Appraisal Management page, you will have the ability to streamline your appraisal ordering with just a few clicks of your mouse.
The ability to order appraisals will automatically be given to any approved USA Direct Funding Brokers. All new brokers will need to be granted access by a company administrator before being able to order an appraisal through the USA Direct Funding website. For more information on how to grant this user access, please contact your account executive.

V. BENEFITS OF ORDERING APPRAISALS through USA DIRECT FUNDING

USA Direct Funding contracted with multiple nationwide management companies, referred to as Appraisal Management Companies (AMC), to provide appraisal services for ALL loan products. Through the AMC process, ordering the appraisal is streamlined and orders are routed to appraisers based on coverage and capacity so you are never left searching for an appraiser.

Utilizing our new Appraisal Management page means:

Full Home Valuation Code of Conduct Compliance
The Appraiser Management Company Appraiser is automatically approved with USA Direct Funding so the appraiser does not have to go through the appraiser approval process.
The underwriters appraisal review process is reduced, decreasing appraisal related conditions, including requests for additional comparables.
With a nationwide network of appraisers, the struggle to find an appraiser in unfamiliar markets is eliminated.
Increased operation efficiency as the Appraisal Management Company arranges the appraisal appointment, communications and quality review.
Online appraisal order placement and real-time statuses provide immediate appraisal assignment and order status updates, resulting in reduced time and phone calls for the loan originator.
The Appraisal Management Companies provide dedicated customer service staff to handle orders, payment processing, errors and omissions, value reconciliation, and appraiser contacts.
Electronic appraisal delivery ensures all parties receive a timely copy of the completed report.

Services provided by ordering appraisals via www.usadirectfunding.com:

Our System will select the appraiser, arrange for the inspection appointment, perform a quality control review on the appraisal and deliver a PDF appraisal. Other important and helpful services include:

Tracking the appraisal order directly with the appraiser.
Supporting all customer service requests, including rushes.
Handling addendums, errors and omissions, and any other request directly with the appraiser.
Performing a compliance and quality review on the appraisal report prior to delivery to USA Direct Funding and the Broker.
Display appraisal order tracking on-line and/or by contacting customer service
Electronically delivery of the final appraisal report, and addendum.
Automated Status Alerts.

VI. VALUE RECONSIDERATION
Requests for value reconsiderations or other information on an appraisal must be made via the Appraisal Management Company chosen to ensure that an independent valuation opinion is reached. Generally, Appraisal Management Companies will require additional comparable sales or evidence of material defect in the appraisal in order to process a value reconsideration request.

VII. DOCUMENT DELIVERY
Completed appraisal reports will be emailed to the borrower, broker and the Lender directly. All status emails will go to the broker and borrower. Payment is required upfront by the broker to order the appraisal. Each appraisal will include an invoice regardless of the payment option to ensure fee amounts on the loan are accurate.

VIII. APPRAISER CONTACT
Appraiser contact will be facilitated solely by the Appraisal Management Company chosen to ensure appraiser independence. Any questions or concerns throughout the appraisal process should be directed to and handled by the Appraisal Management Company. Direct contact with the appraiser is prohibited.

IX. ADDING APPRAISERS
Appraisers may be added to an Appraisal Management Company’s appraiser network by making contact with the Appraisal Management Company. Appraisers in the Appraisal Management Company network receive a rating reflecting the work preformed. Each Appraisal Management Company will place orders only with appraisers that meet or exceed standards. Refer to the Appraisal Management Page section of our website to learn more about specific instructions on adding appraisers.

X. SUPPORT
The first point of contact is always the Appraisal Management Company chosen. All questions and concerns regarding appraisal reports (comparables, address, etc.) and value reconsiderations should be presented to the Appraisal Management Company first. The Appraisal Management Company will research and request the appropriate remedy with the appraiser. As a rule of thumb, consider the Appraisal Management Company equal to the appraiser. Any questions previously directed to the appraiser should be directed to the Appraisal Management Company.

If the AMC representative cannot resolve the concern, there are two options available:

Contact your Account Executive and work directly with him/her to resolve the concern.
If the Account Executive cannot resolve the concern, you may contact USA Direct Funding’s Appraisal Review Team. This internal support team consists of representatives that can assist on various issues or help direct the call to the appropriate staff member. This team can be reached via email at Appraisal.Review@usadirectfunding.com

Any concerns with the underwriting of the appraisal must still to be resolved by the underwriter.

XI. CONCLUSION
If you have any questions please contact your Account Executive.

Frequently Asked Questions

Thank you for your continued business.