The new HVCC guidelines that go into effect on May 1st are designed to strengthen the appraisal practice, reduce improper influence and monitor adherence to the government agencies appraisal standards & requirements as outlined in The Uniform Standards of Proof of Appraisal Practice. This applies to lenders that sell single family mortgages including one to four unit multi family units as well. Upon review of the guidelines we see there are grey areas that will no doubt change as things go forward but in the meantime will create new tasks for many. With the proposed budget that has been suggested for the increase of SWAT or Special Work Assessment Teams for spot checking of compliance with these new regulations on a random basis, we recommend you implement an HVCC process prior to May 1st so requirements are met beyond a reasonable doubt. The finalized version of HVCC guidelines will give you a positive opportunity to make certain you have protected yourself from the legal liabilities not only on the FHA side but to reduce your exposure to unwarranted claims.

For some time now we have seen the lending market moving towards outsourcing property valuations to increase productivity and reduce their legal liability. With the implementation of the new HVCC guidelines becoming mandatory on May 1st this may be the time to move forward if this is something you have been considering.

Our full service asset management company with 25 years of experience in helping clients manage their valuations and work outs, can provide you with the systems you need, save you time and increase the productivity of your LO and loan production staff by increasing their efficiency. Our processes are already in full compliance with the new HVCC guidelines with protections of both physical and technological fire walls and auto assignment features, to protect you from regulatory liability. In addition we provide protection from claims regarding lender influence on items such as appraiser selection, appraiser retention, appraiser recommendation or improper affiliations.

HVCC guidelines state lenders which retain in house operations “must be able to clearly demonstrate that it has prudent safeguards to isolate its collateral evaluation process from influence or interference form its loan production process” and “it shall quality control test, by use of retroactive or additional appraisal reports or other appropriate method, of a randomly selected 10% (or other bona fide statistically significant percentage) of the appraisals or valuations which are used by the lender, including the results of automated valuation models, broker price opinions or “desktop” evaluations”. If this is an option you will employ you may only choose to use us on an occasional basis to supplement your processes or to meet your audit requirements.

Isolation

Isolation of your loan production staff, including anyone compensated or commissioned on loan production and / or reports to production management.

We meet these requirements by supplying you with appropriately trained personnel who meet the compliance guidelines and support you with a totally independent staff and data base already fully stocked with approved and qualified appraisers. In addition we manage and continually add to and update this, free of influence with guidelines that are track able, reportable, and auditable.

Technology

We continually audit our data base for appropriate licensing, quality, accuracy and disciplinary measures and will maintain and enforce a compliance and disciplinary policy alleviating you of this task. If a second appraised needs to be ordered, we maintain documentation so no complaints can be alleged. We ensure timely unbiased appraiser payment and separately manage the appraiser receivable as well.

How We Are Different?

Our agents and appraisers are not required to pay a fee nor do we force our appraisers to sign a service contract as is sometimes the case. We do not ask our appraisers to cut their price as we insist on top quality and strong turn times on each and every order. Since we place consistently with our appraisers we can still be cost effective to you. Long term experience gives you the quality you deserve while increasing your staffs efficiency and productivity.

Why Outsource?

Abundant implementation challenges, fear of liability and rapid changes can distract your focus. We firmly believe in the concept of outsourcing. We do what we do well but we don’t try to do it all. Our departments and divisions are segregated to give our staff the focus on your problems that you deserve.

Safety

With each FHA appraisal we will send a certification copy of our HVCC compliance.

Remember when using the National REO division of Coface there is never a contract so as the rules change so can you, making us a flexible solution that can be tailored to your needs in these changing times.

 See the website below for more information.  Home Valuation Code of Conduct