HVCC Update - Outlook and Solutions for Lenders

1. HVCC Update - Outlook and Solutions for Lenders Bill Dyson -- CitiMortgage

2. HVCC Update CitiMortgage implemented the HVCC policy March 1, 2009 CitiMortgage partnered with RealTrans to provide brokers web-based access through our loan registration website to order appraisals after loan registration CitiMortgage partners with six appraisal management companies Robust vendor management Vendor Selection Vendor Performance Tracking Robust appraisal process Ordering Appraiser assignment criteria Appraisal review Mirrors the established retail appraisal processes CitiMortgage has had in place for years

3. HVCC Update Opportunities to enhance the HVCC process Improve ease of appraisal portability Issue: While the HVCC is designed to permit appraisals to be portable between lenders, to be portable, the HVCC mandates that lenders provide written certification that the appraisal complies with the code The required certification is broad and encompasses all aspects of HVCC, not just appraisal ordering Potential liability for lenders providing certification is unknown Not all lenders are willing to accept appraisals certified by other lenders Not all lenders are willing to provide other lenders with the required certification May result in closing delays May require borrower to pay for a second appraisal with the new lender Potential solutions: Establish common language to accompany appraisal portability which certifies the appraisal was ordered and completed in compliance with the HVCC with a disclaimer of liability to the original lender Or, Fannie and Freddie certify lenders as “HVCC Complaint” , audit accordingly and maintain and publish a list of lenders who are complaint with the HVCC Provide guidelines similar to the recent FHA appraisal rules effective January 1, 2010 Appraisers must have experience with the property type and in the market area Appraiser must certify access to appropriate data sources in which the property is located