Home value Code of ConductHousing Value Code of Conduct
Abstract of the Home Value Code of Conduct
As of 1 May 2009, all mortgages and creditors must introduce new methods for issuing expert opinions in accordance with the German Home Valuation Code of Conduct. Aim of the ordinance is to guarantee the Integrity and Independency of the assessment proces. The 10 "key points" of the Code are given. The HVCC (the Code) will enter into force on 1 May 2009 and will apply to traditional loan contracts to Fannie Mae and Freddie Mac.
Copies of the expert opinion must be sent to the borrowing party immediately and no later than three workingdays prior to conclusion; however, the borrowing party may dispense with the 3-day-rules. Staff working in either distribution or manufacturing cannot communicate objectively with the assessor, nor can they manage the order. Creditors must carry out quality controls on 10% of valuations, automatic assessment model (AVM) and desk-top-analyses.
Creditors may not use opinions provided by an assessor engaged by the creditor, its related undertaking or a unit in part or in full its possession. Creditors may not use an estimate that has been made by an estimator that partially or fully holds the creditor or its affiliates. If there is a total or a partial interest between a creditor and an appraising firm, the creditor must follow and secure all the above rules:
c) the creditor and the assessor/assessor society have adopted certain guidelines and applied the Code; d) an independent review of the creditor's adherence to the assessor function takes place annually; and e) the creditor and assessor recognise the Independent Valuation Protection Institute (IVPI).
The Bankers Advisory has produced a summary of the Home Valuation Code of Conduct, a clear and concise guide for the official HVCC. If you would like a free copy or a copy of the official code, please e-mail us. To have Bankers Advisory draft a guidelines handbook or for assistance with the implementation of a regulatory review programme, please call our Director of Marketing & Communications, Lucia Arno-Bernsen at 617-489-2008.
He is the original writer of All Reg's new State Rules Matrices, Complists and soon will also be the authorized fee matrices. Now, your pre-financing and succession staff can help assure regulatory adherence using the same highly efficient check lists used by Bankers Advisory's quality control team. In 1986 Anna DeSimone established Bankers Advisory and is a national recognised body in the field of mortgages.