Ellie Mae announces new HVCC-compliant appraisal servicesMortgagePress.comEllie Mae, appraisals, Home Valuation Code of Conduct, HVCC-Compliant Appraisal Services, appraisal management companies
Ellie Mae, a provider of loan processing software for mortgage
bankers, brokers and other third party originators, has announced
its HVCC-Compliant Appraisal Services, a new program designed to
help banker, lender and broker clients to fully comply with the
Home Valuation Code of Conduct (HVCC) that goes into effect on May
1, 2009.
"The Home Valuation Code of Conduct's guidelines will require
mortgage professionals to change the way they do business with
appraisers," says Ellie Mae's senior vice president, Richard Roof.
"After May 1, originators who fail to comply with the HVCC may be
faced with penalties, the inability to sell loans, or in the case
of brokers, will be unable to submit their loan applications to the
wholesale lender of their choice."
Ellie Mae's HVCC-Compliant Appraisal Services will leverage
technology enhancements, partnerships with appraisal management
companies (AMCs), and direct connection via the ePASS Network to
facilitate HVCC-compliant ordering and delivery of appraisals for
Ellie Mae's banker, broker and lender clients, who together
originate 50 percent of the nations third-party origination loan
volume, and 25 percent of the nation's mortgages each year. With
the HVCC-related enhancements to the Encompass Mortgage Management
Solution, companies gain the ability to control which staff members
can electronically order appraisals, create rules based on property
location and loan type, and create and manage their own appraisal
panels. Users will also be able to connect directly with top
appraisal management companies that are integrated to the ePASS
Network. Ellie Mae is working with correspondent and wholesale
lenders to incorporate solutions that enhance appraisal portability
and simplify lender re-certifications.
The Home Valuation Code of Conduct was established by Fannie
Mae, Freddie Mac and the Federal Housing Finance Agency (formerly
OFHEO). In short, the HVCC sets forth a series of guidelines that
govern appraisal-related activity among mortgage companies for
loans that are sold to Fannie Mae and Freddie Mac, in an effort to
reduce the risks associated with the appraisal process. Most of the
HVCC's stipulations are focused around ensuring objectivity in
ordering real estate appraisals by brokers and correspondent
lenders. Fannie Mae and Freddie Mac will not accept loans on or
after May 1, 2009 that do not adhere to the Home Valuation Code of
Conduct.
Ellie Mae's HVCC-Compliant Appraisal Services will be comprised
of the following:
• Encompass product enhancements that enable correspondent
lenders to manage and administer their HVCC policies, manage their
own appraisal panel, compliantly order appraisals from appraisal
management companies integrated into Encompass, and access all
appraisal related documents and information via the Encompass
eFolder.
• Partnerships with the industry's most widely approved
appraisal management companies, as well as appraisal management
companies that are successfully targeting the third party
originator market.
• A "black box" appraisal center that will enable "blind"
HVCC-compliant appraisal ordering for wholesale lenders and their
mortgage brokers, enhancing appraisal portability and simplifying
lender re-certifications.
• New automated valuation models and additional valuation
services, available to all originators at the point of sale through
the Encompass network, to help assure that loans are properly
pre-qualified and targeted.
Several of the industry's most widely accepted and leading
appraisal management companies have partnered with Ellie Mae to
participate in the HVCC-Compliant Appraisal Services program,
including First American eAppraiseIT, ServiceLink, Finiti,
StreetLinks, and AppraiserLoft. Three appraisal management
companies that are also participating are also already integrated
into the Encompass network: CBCInnovis, DartAppraisal.com and
Nations Valuation Services. Ellie Mae plans to continue adding
appraisal management companies on a case-by-case basis.
Roof adds, "Ellie Mae's HVCC-Compliant Appraisal Services
alleviate the burden of compliance by providing mortgage
professionals with the tools to quickly, easily and electronically
procure appraisals according to Home Valuation Code of Conduct
guidelines, at no additional cost to the mortgage banker, lender or
broker."
For more information, visit www.EllieMae.com.
