Date: March 14, 2008
To: All Fannie Mae Single-Family Mortgage Sellers
Subject: Lender Letter 01-08: Home Valuation Code of Conduct Comment Period


Introduction
 

On March 3, 2008, Fannie Mae entered into an agreement (the “Agreement”) with the New York State Attorney General and one of our regulators, the Office of Federal Housing Enterprise Oversight (OFHEO), to enhance appraisal practices. As part of the Agreement, Fannie Mae agreed to adopt a Home Valuation Code of Conduct (the “Code”) created by the Attorney General’s Office and OFHEO. The Code was developed to help reinforce the independence of appraisers as well as to enhance the overall integrity of and confidence in the national housing finance system.
 

The Agreement and the Home Valuation Code of Conduct can be viewed on eFannieMae.com.
 

Fannie Mae will require that all lenders represent and warrant that appraisals conducted in connection with single-family mortgage loans originated on or after January 1, 2009 that are delivered to Fannie Mae, conform to the Code. After January 1, 2009, we will not purchase single-family mortgage loans, other than government-insured loans, from mortgage originators that do not agree to adopt the Code with respect to such loans that are delivered to Fannie Mae.
 

Comment Period
 

As part of the Agreement, a comment period has been established for all industry participants to provide comments on the implementation of the Code. The comment period begins at 1:00 PM on Friday March 14, 2008 and ends at 11:59 PM on April 30, 2008. Comments on the Code are to be submitted to Fannie Mae at eFannieMae.com (www.efanniemae.com/go/appraisalcomment.jsp). All comments received will be forwarded to OFHEO and the NY Attorney General for review and consideration.

In recognition of the significant changes provided by the Code, Fannie Mae encourages all of our customers to review the documents and provide comments they find appropriate. Additionally, we encourage our lenders to forward this communication or the information herein to any party that may be impacted by the Code to ensure they too have an opportunity to submit their comments.

Lenders should contact their Customer Account Manager with general questions related to Lender Letter 01-08.
 

Michael A. Quinn
Senior Vice President
Single-Family Risk Officer

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