The Mortgage Lending Crisis: A Snapshot
One of the many troubles plaguing today’s mortgage industry is a collapse of confidence in the collateral valuation process.
The Home Valuation Code of Conduct (HVCC) revised guidelines of 2009 are meant to address that lack of confidence. Among the code restrictions, the practice of contracting a specific appraiser to evaluate a specific property is prohibited. A process to select an appraiser that is independent of influence by an individual with a conflict of interest is prescribed by a variety of subsections in the code by Fannie Mae and Freddie Mac.
FHA has issued revised Appriasal Independence standards with Mortgagee Letter 2009-28. The revisions are effective as of February 15, 2010. FHA has their own unique requirements. In particular, FHA issued New requirements around appraisal ordering, registration within FHA Connection, and the treatment of AMC compensation.
How will lenders and mortgage brokers conform to related guidelines? How can they do so efficiently and transparently, with minimal disruption to their day-to-day business?
AIMSdashboard, LLC has developed a Software as a Service offering to provide Lenders with a software based Appraisal Independence Management System (AIMS) to operationalize the lender's policies, provide strong management features relating to approved appraisers (in network) and appraiser selection for out of network geographies, and the inherent capabilities to proactively demonstrate the policies in action to meet appraisal independence standards and compliance.