WASHINGTON (4/9/08)—The Credit Union National Association (CUNA) is seeking comment on a proposal by Fannie Mae and Freddie Mac to implement the New Home Valuation Protection Code (Code), new standards designed to ensure independent and reliable appraisals. Early last month, the Office of Federal Housing Enterprise Oversight (OFHEO), the New York Attorney General, Fannie Mae, and Freddie Mac entered into agreements that require Fannie Mae and Freddie Mac to buy loans only from financial institutions that meet the new standards set out by the code. The significant provisions of the Code include prohibitions against:
* Mortgage brokers selecting appraisers; * Lenders using “in-house” staff appraisers to conduct initial appraisals; and * Lenders using appraisal management companies that they own or control.
Freddie Mac and Fannie Mae are requesting comments on the implementation of the Code by April 30. CUNA seeks to have credit union comments by April 22. Use the resource link below to read the points address in CUNA’s Comment Call.