May 20, 2010
FHFA Kills IVPI, Announces Complaint Process
20 May 2010
Posted by VAR
NAR’s Appraisal Insight blog reports a change in plans for complaint procedures related to the Home Valuation Code of Conduct:
In a letter to New York Attorney General Andrew Cuomo, the Federal Housing Finance Agency’s (FHFA) Interim Director, Ed DeMarco, announced that the Independent Valuation Protection Institute (IVPI) will not be implemented by Fannie Mae and Freddie Mac. Instead, the GSEs will offer a standard form for appraisal complaints and act on suspected acts of fraud and violations of HVCC. The form should be available in the coming weeks.
Mr. DeMarco cites the use of substantial taxpayer funds on the GSEs as the primary reason the IVPI will not be implemented. “In light of the billions of
dollars in taxpayer funds the Enterprises have drawn since entering conservatorships, I cannot, as conservator, justify the Enterprises funding the Institute. Therefore, as conservator, I have determined that they will not proceed with that portion of the Cooperation Agreements.”