Ellie Mae Offers New HVCC-Compliant Appraisal Services

Pleasanton, California-based ""Ellie Mae"":http://www.EllieMae.com announced on Friday the launch of the company's HVCC-compliant appraisal services, a new program designed to help banker, lender, and broker clients comply with the GSEs' Home Valuation Code of Conduct (HVCC) that goes into effect on May 1, 2009.
According to Richard Roof, Ellie Mae’s SVP, the HVCC guidelines will require mortgage professionals to change the way they do business with appraisers. ""After May 1, originators who fail to comply with the HVCC may be faced with penalties, the inability to sell loans, or in the case of brokers, will be unable to submit their loan applications to the wholesale lender of their choice,"" Roof added.
The Home Valuation Code of Conduct was established by ""Fannie Mae"":https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/appcode/pdf/hvccfaqs.pdf, ""Freddie Mac"":http://www.freddiemac.com/singlefamily/hvcc_faq.html, and their conservator, the Federal Housing Finance Agency (FHFA). The conduct sets forth a series of guidelines that govern appraisal-related activity among mortgage companies for loans that are sold to Fannie Mae and Freddie Mac, in an effort to reduce the risks associated with the appraisal process. Most of the HVCC’s stipulations are focused around ensuring objectivity in ordering real estate appraisals by brokers and correspondent lenders. Fannie Mae and Freddie Mac will not accept loans on or after May 1st that do not adhere to the HVCC.
Ellie Mae’s HVCC-compliant appraisal services will leverage technology enhancements, partnerships with appraisal management companies (AMCs), and direct connection via the company's ePASS Network to facilitate the ordering and delivery of HVCC-conforming appraisals for Ellie Mae’s banker, broker, and lender clients. According to Ellie Mae, as a whole, its client base originates 50 percent of the nation’s third-party origination loan volume and 25 percent of the nation’s mortgages each year.
With Ellie Mae's HVCC-related enhancements, companies can control which staff members are able to electronically order appraisals, create rules based on property location and loan type, and create and manage their own appraisal panels. Users will also be able to connect directly with appraisal management companies that are integrated to the ePASS Network. Ellie Mae said it is also working with correspondent and wholesale lenders to incorporate solutions that enhance appraisal portability and simplify lender re-certifications.
Several of the industry’s appraisal management companies have already partnered with Ellie Mae to participate in the HVCC-compliant appraisal services program, including First American eAppraiseIT, ServiceLink, Finiti, StreetLinks, AppraiserLoft, CBCInnovis, DartAppraisal.com, and Nations Valuation Services. Ellie Mae plans to continue adding appraisal management companies on a case-by-case basis.
According to Roof adds, the company's new HVCC-compliant appraisal services alleviate the burden of compliance by allowing mortgage professionals to electronically procure appraisals in accordance with HVCC guidelines, ""at no additional cost to the mortgage banker, lender or broker.""