In a letter to New York Attorney General Andrew Cuomo, Edward J. DeMarco, acting director of the ""Federal Housing Finance Agency"":http://www.fhfa.gov/ (FHFA), said ""Fannie Mae"":http://www.fanniemae.com/kb/index?page=home and ""Freddie Mac"":http://www.freddiemac.com/ will deploy a complaint process for violations of the Home Valuation Code of Conduct (HVCC).[IMAGE]
According to DeMarco, the complaint process, which is expected to be implemented in the next few weeks, will address suspected code violations, including a mechanism for providing pertinent information to state and federal regulators and enforcement departments.[COLUMN_BREAK]
DeMarco said this process will be implemented in lieu of funding for the Independent Valuation Protection Institute, which was called to be established and funded by Fannie Mae and Freddie Mac under the cooperation agreements between Attorney General Cuomo's office, the Office of Federal Housing Enterprise Oversight (now FHFA), and the government-sponsored enterprises (GSEs).
The purpose of this institute was to collect and report on complaints regarding appraisals. But in his letter, DeMarco said the plans for the institute and the GSE's financial support for it were made before FHFA placed the enterprises into conservatorships.
In light of the billions of dollars in taxpayer funds Fannie Mae and Freddie Mac have drawn since entering conservatorships, DeMarco said he could not justify the enterprises funding the institute.
""As conservator of Fannie Mae and Freddie Mac, our priority is to keep the enterprises focused on the important role they play in supporting the mortgage market,"" DeMarco said. ""The need for a complaint process is being addressed in a way that we believe is more practical than with the institute.""