FNC survey: Most U.S. lenders ready to comply with HVCCMortgagePress.comFNC, Home Valuation Code of Conduct, HVCC, appraisals, GSEs
At just one month out, U.S. mortgage lenders are confident that
their systems will be ready to support compliance with the Home
Valuation Code of Conduct by the imposed May 1 deadline, yet few
say they have actually completed system upgrades designed to ensure
These conclusions result from a survey distributed last week to
more than 1,000 key contacts of mortgage technology company FNC,
whose clients include the nation's major mortgage lenders, as well
as regional and community banks.
On May 1, the Home Valuation Code of Conduct is scheduled to
take effect, mandating that all new loan originations sold to
Fannie Mae and Freddie Mac comply with strict rules established to
mitigate the risk assumed by these two government-sponsored
enterprises (GSEs). FNC has repeatedly urged its clients and other
lenders to immediately update their internal systems and processes
for any loans they plan to sell to the GSEs.
According to the survey, almost 80 percent of respondents felt
confident that their systems would be ready to comply, but with the
deadline a month away, only 14 percent had completed the necessary
"Some lenders may not be fully aware that their systems and
processes will require significant changes to avoid penalties
associated with selling their new originations to the GSEs after
May 1," said Jon Fisher, FNC's designated HVCC implementation
expert. "Even those that think they are in compliance need to make
sure by contacting us or their internal compliance groups
When asked what systems they would use-their own or a
third-party solution-the response was mixed: About 21 percent said
they would use their own internal proprietary processes; 18 percent
would use a vendor management company (VMC) to ensure compliance on
their behalf; 15 percent would choose a full-purpose software
vendor, such as FNC; and 12 percent indicated they would choose
Of those who had already secured a compliance solution prior to
completing the survey, most said they chose either their own
proprietary system or a full-purpose software vendor; 13 percent
selected multiple VMCs; and 6.7 percent chose a single VMC.
"FNC pioneered real estate collateral information technology,"
Triplette said. "Since 1999, FNC has offered solutions that
automate appraisal ordering, tracking, documentation and review for
lender compliance with OCC, OTS, Federal Reserve, FDIC, and other
regulations, including appraiser independence and GSE guidelines.
As a result, FNC's lender clients-the nation's major lenders-have
realized reduced costs and more efficient loan processing."
For more information, visit www.fncinc.com.