The Independent Valuation Protection Institute is to be established to maintain the integrity of HVCC (Home Valuation Code of Conduct) by monitoring and studying federal and state laws and regulations as well as market practices and standards.
The Independent Valuation Protection Institute is to be headed by a Board of Directors. The Board is to consist of experts in the fields of real estate finance, loan origination, law enforcement, compliance review and real estate valuation and appraisal. Members of the Board may not have financial connection to Fannie Mae or Freddie Mac.
The Independent Valuation Protection Institute is to be funded primarily by Fannie Mae and Freddie Mac for a period of not less than five years.
Appraisers will be able to contact the Independent Valuation Protection Institute if they feel pressured, threatened or bribed into situations that compromise their independent valuation(s) and compliance with HVCC.
The Independent Valuation Protection Institute will mediate incoming complaints and concerns to the appropriate federal and state regulators and in some cases, may even forward complaints to federal law enforcement agencies when warranted.
A hotline number and email address is to be established and provided for consumers to contact if they believe the appraisal process has been tainted or if they have been affected by appraisal fraud.
The New York Attorney General’s Office and the Office of Federal Housing and Enterprise Oversight (OFHEO) will approve membership of the Board members and the Independent Valuation Protection Institute may be affiliated with existing academic, professional and/or industry organizations.