Because I'm already a Mercury Network member, after you complete your own Mercury Network profile, you can add me to your appraiser panel, if you choose to. Mercury Network's Intelligent Selection System (ISS) enables you to order appraisals "blind", based on pre-set ordering criteria so you can be confident you're ordering appraisals with complete HVCC-compliance. You'll also appreciate Mercury Network's pre-populated status message and text box-driven communications which provide you with an audit trail for each transaction. To order using Mercury Network, click here.

Appraisal Port Users (option 2)

Capuano Appraisal Services currently subscribes to the FNC Appraisal Port Portal.  Please add us as one of your approved appraisers.  Just e-mail your registration key and we will add you to our client list.

FHA Appraisal Ordering

Use any HVCC compliant ordering process.   The ones above are good options with very low costs.  Read the Myths about HVCC to see other ordering options that are in compliance.  The use of AMC's is in no way required by HVCC and can end up costing you and your clients more money for lower quality reports.

AMC Appraisal Ordering

Capuano Appraisal Services is happy to work with your appraisal management team or with your AMC!  Please add us to your fee panel and you can receive high quality appraisals today!  We only work with high quality AMC's that pay fair market value for appraisals.  If your fees are below market and you work with the cheapest least expensive appraisers, please do not contact us.  Thank you.

  Home Valuation Code of Conduct

Reality: Use of appraisal management companies is not required under the Home Valuation Code of Conduct (HVCC). Lenders may engage appraisers directly without the use of third parties.

Myth: Mortgage sellers cannot achieve compliance without outsourcing the appraisal function.

Reality: Sellers may achieve compliance by establishing meaningful risk management practices, including separation between risk management (appraisal) and loan production. The Code requires that loan production staff not be involved in ordering the appraisal. This separation is currently required under existing federal bank regulation.

Myth: "Loan Correspondents" or "correspondent lenders" are the same as mortgage brokers and they too cannot order appraisals.

Reality: Unlike mortgage brokers, loan correspondents fund loans in their own name and, therefore, have "skin in the game." They are allowed to order appraisals on loans sold to Fannie Mae and Freddie Mac like other sellers that fund loans in their own name or with their own funds. Mortgage brokers no longer will be able to engage real estate appraisers directly.

Myth: Sellers cannot maintain the appraisal function internally (as an in-house operation), without loan production involvement.

Reality: There are several ways in which sellers may staff appraisal functions internally without outsourcing the function to a third party, so long as they maintain separation between risk management functions and loan production staff. To achieve compliance the appraisal function should report to an individual or department outside of loan production. Some examples of eligible individuals or entities within institutions include, but are not limited to, the following:

Reality: Loan production staff may communicate with the appraisers, but they cannot be involved in selecting, retaining, recommending or influencing the selection of any appraiser for a particular appraisal assignment. Further, loan production staff cannot have any "substantive communications with an appraiser or appraisal management company relating to or having an impact on valuation, including ordering or managing an appraisal assignment."

Myth: Outsourcing appraisal functions to an appraisal management company can reduce costs.

Reality: Given the diversity in the size and structure of lending institutions, it is difficult to conclude that outsourcing necessarily will reduce costs. Lenders incur costs for appraisal risk management whether done in-house or outsourced. Lenders should consider all the costs of compliance, including the costs associated with ensuring appraiser competence and appraisal quality, before making a decision to outsource their risk management functions.

Myth: Outsourcing appraisal management to a third party reduces lender risk.

Reality: Federal bank regulatory agencies have cautioned against reliance on third-party relationships by reaffirming that such relationships may significantly increase a bank’s risk profile, notably its strategic, reputation, compliance and transaction risks1. According to federal banking guidelines, "Increased risk most often arises from poor planning, oversight and control on the part of the bank and inferior performance or service on the part of the third party, and may result in legal costs or loss of business. To control these risks, management and the board must exercise appropriate due diligence prior to entering the third-party relationship and effective oversight and controls afterward."

 Myth: Use of third party vendors ensures the use of competent appraisers.

Reality: Lenders traditionally have been responsible for ensuring the competency of the appraisers and reliability of the appraisals they use for credit decisions. However, the competency of an appraiser is not measured by scoring compliance with seller servicer guidelines. Processing appraisal orders is a separate function that does not specifically include a review of competency. The function of competency review is best performed by individuals with significant education in appraisal standards and theory.

Further, institutions should consider any potential reductions in quality that might result from outsourcing the appraisal function. To this point, federal bank regulatory agencies recently reminded institutions to consider an appraiser’s competency for any given appraisal assignment.2

Reality: Licensing does not necessarily ensure the competency of an appraiser. The Fannie Mae and Freddie Mac Selling Guides require lenders to review the appraiser’s education and experience. Specifically, the Fannie Mae Selling Guides state:

Myth: Professional appraisal designations cannot be used when evaluating the qualifications, education and experience of an appraiser.

Reality: The Fannie Mae Selling Guides state that designations may be helpful in evaluating an appraiser's qualifications, particularly when the designation is from a nationally recognized organization. Specifically, the Fannie Mae Selling Guide states:

Myth: "Comp checks"  which are prohibited under the HVCC without an engaged appraisal assignment  are the only way to determine if there is sufficient value in the collateral before proceeding with a loan application.

Reality: Lenders often want to know if there is sufficient value in the collateral before proceeding with a loan application. To determine this in the past, lenders and brokers would request "comp checks" of the appraiser. The HVCC bars lenders from ordering "comp checks" without engaging an appraiser in an appraisal assignment. Lenders may engage appraisers in appraisal assignments that involve a scope of work that is significantly narrow. For example, the appraiser could provide an answer to the question "is the property worth at least $XX" or "is it within a certain range," rather than a single point value estimate? This still would be an appraisal; the appraiser would need to complete the necessary research and analysis to answer such a question, and would have to document that analysis properly. Alternatively, the appraiser could be engaged in a consulting assignment to provide raw data to the client to help with their analysis.

HVCC (Home Valuation Code of Conduct)

Fannie Mae's New From 1004MC

Important things to know when ordering;

1.  Form 1004MC will be required after April 1st 2009.

2.  Sales contracts must be provided with appraisal orders starting January 1st 2009.

HVCC FAQ https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/appcode/pdf/hvccfaqs.pdf

HVCC Presentation

http://fanniemae.articulate-online.com/p/7778743881/DocumentViewRouter.ashx?Cust=77787&DocumentID=8c52a13c-6bbc-4cfa-9594-cab11a890869&Popped=True&InitialPage=player.html

New Fannie Market conditions form (11/08)
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0830.pdf

FAQs on the new form
https://www.efanniemae.com/sf/formsdocs/forms/pdf/sellingtrans/appraisalfaqs.pdf

Last month Fannie Mae released a Market Conditions Addendum to the Appraisal Report (Form 1004MC) as part of Announcement 08-30. The form will be required with all appraisals of one-to-four unit properties effective April 1, 2009. According to Fannie, the form provides appraisers with a structured format to report the data and to more easily identify current market trends and conditions. Announcement 08-30 includes new and updated policies regarding the use of supervisory appraisers, the requirement to provide the sales contract to the appraiser and the selection of comparable sales. It provides clarification on the research and reporting of current and prior listings of the subject property, appraising the entire site of a property, time adjustments, verification of sales transactions, neighborhood boundaries and the selection of comps and more. You can find Announcement 08-30 which contains Form 1004MC at WorkingRE.com, Sidebar; Fannie Mae Announcement 08-30.

Go to http://www.freddiemac.com/singlefamily/docs/030308_valuationcodeofconduct.pdf for the Full HVCC Guildlines.