by Robert Hyder
Fannie Mae’s and Freddie Mac’s latest modification is being implemented in the Home Valuation Code of Conduct, effective Friday, May 1, 2009. The Home Valuation Code of Conduct is a safeguard put into effect to ensure uniform compliance of the appraisal process. According to executives at Global DMS LLC, the creators of the OASIS software, many mortgage lenders are ill prepared to conform to the latest rule revision.
Mortgage lenders are not required to utilize an appraisal management company rather than an independent appraiser, but that is the leading misconception among lenders. Lenders are incorrectly assuming that if they use an appraisal management company, it will result in compliance.
Mortgage lenders can no longer pay for appraisals as they are completed. Therefore, they will be forced to handle prepayment of appraisals while they simultaneously manage the appraisal process.
The OASIS software will enable lenders to manage the appraisal process while utilizing either their own appraisers or the Global DMS LLC appraisal network. OASIS will ensure compliance with the Home Valuation Code of Conduct while simplifying the entire process.
Global DMS LLC will waive the set-up fee for mortgage lenders that choose to utilize their software. In addition, Global DMS LLC will allow their per-order delivery fee to be passed along to the appraisal management companies or to an individual appraiser. Another company, ServiceLink, also offers software that will comply with the Home Valuation Code of Conduct. ServiceLink’s software, dubbed Appraiser Panel Management (APM), also allows mortgage lenders to draw on the relationships they’ve developed with appraisers over time.
Because lenders own an interest in appraisal management companies, some appraisers are left to believe that the lenders will remain adept to exercise their influence on appraisals.
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