What does this week's takeover of Fannie and Freddie mean to the Home Valuation Code of Conduct? It's too early to tell, according to Bill Garber, Director of Government and External Relations of the Appraisal Institute. "It does not necessarily mean the HVCC is dead," said Garber, "But the dynamics have changed." 

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Inside the Beltway: What the GSE Takeover Means for the HVCC What does this week's takeover of Fannie and Freddie mean to the Home Valuation Code of Conduct? It’s too early to tell, according to Bill Garber, Director of Government and External Relations of the Appraisal Institute. “The takeover does not necessarily mean the HVCC is dead,” said Garber, “But the dynamics have changed.” Garber explains that Fannie Mae, Freddie Mac and the Federal Housing Finance Agency (formerly the Office of Federal Housing Enterprise Oversight) have been seeking concurrence with the federal bank regulatory agencies for several weeks, and that these discussions may intensify. While FHFA officials are extremely busy with the takeover, the HVCC is still likely being discussed. In the end, the ball appears to be in FHFA’s court as far as proceeding or backing away and taking a different course of action. One of the biggest questions looming over the HVCC is whether federal bank regulatory agencies will accept it in final form. The Office of the Comptroller of the Currency strongly protects the right to set policy for national banks, and typically does not shy away from exempting national banks from certain policies. Will they buy into a code of conduct that arguably establishes policy over national banks, or will they move to exempt regulated institutions if a code of conduct is released that the agency disagrees with? Ultimately, Congress may get involved before it is all said and done with. “Congress is already looking at reengineering Fannie Mae and Freddie Mac, perhaps consolidating their structure, or even privatizing them. These discussions will certainly carry over to the 111th Congress,” said Garber. “In addition, the Treasury Department has released several recommendations on reforming mortgage professional regulation, including that of real estate appraisers, among other industries. Legislation to make reforms to Title XI of FIRREA is currently pending in the Senate after passing the House last year. It is possible that all of these issues may coalesce and feed into a larger debate in the near future.” Ultimately, it’s likely too early to tell exactly how the issue will play out. Stay tuned to ANO for all of the latest information. Thoughts? E-mail insidethebeltway@appraisalinstitute.org.