Dear Community Banker,

In the May 6th issue of Mortgage Messenger we provided information regarding the Home Valuation Code of Conduct (HVCC) implementation. Please find below additional clarification and information that you will find helpful.

As of May 1, 2009, all single-family mortgages sold to Fannie Mae and Freddie Mac including those originated by community bank lenders (whether direct or indirect) are required to comply with the HVCC. The way your loans reach the GSE’s determines what steps you must follow to be in compliance.

• If you are a community bank selling directly to the GSE’s please contact your account manager for more details on how your community bank must comply.
  
  
• If you are an indirect lender, a community bank going through another lender who sells directly to the GSE’s, contact the lender for more details on how your community bank must comply.
  
  

The Code only applies to the loan origination process. Appraisals performed for loss mitigation purposes are not governed by the Code. The Code does not apply to loans guaranteed by a federal agency and then sold to either Fannie Mae or Freddie Mac, such as FHA, VA, or USDA Rural Housing.

For details regarding the requirements of the Code as well as frequently asked questions regarding HVCC implementation, please visit the following websites:

• FREDDIE MAC
  
  
• FANNIE MAE
  
  
• FEDERAL HOUSING FINANCE AGENCY