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April 2008
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Open comment period for Home Valuation Code of Conduct

On March 3, Freddie Mac announced that we entered into an agreement with the New York State Attorney General and our regulator, the Office of Federal Housing Enterprise Oversight (OFHEO), to implement and require Freddie Mac Seller/Servicers to adopt the Home Valuation Code of Conduct [PDF 23K] (Code) by January 1, 2009, for mortgages sold to us. 

On March 14, we began the open comment period as specified in the March 3 agreement [PDF 31K] to provide industry participants the opportunity to comment on the implementation and deployment of the Code.  The open comment period will end on April 30, 2008.

To implement the Code as efficiently and with as little disruption as possible, we are specifically requesting comments as we begin the process of assessing changes to our Single-Family Seller/Servicer Guide requirements, systems and operational processes.  To submit comments, we recommend that you provide a consolidated management response from your organization by:

  • Reviewing the Code information on our Home Valuation Code of Conduct website which includes our March 3 Single-Family Advisory customer message, the Home Valuation Code of Conduct and the agreement document signed by Freddie Mac, OFHEO and the New York Attorney General.
  • Providing comments in the following three areas:
    • Specific operational and implementation challenges that your organization will need to address to comply with the Code
    • Any unintended consequences or risks you have identified as a result of implementing the Code
    • Identifying key definitions or terms contained in the Code where you may need additional guidance or clarification.  For example, we’ve already identified the terms “Origination Date,” “small lender,” “correspondent lender” and “broker” as terms that will require further clarification as we develop implementation plans.

Comments must be received in writing through the online form we have established on our Home Valuation Code of Conduct website.  Hard copy, written comments may also be submitted by regular mail or express delivery to the following address:

Home Valuation Code of Conduct Response
Attn:  Senior Vice President, Credit Risk Oversight
Freddie Mac
1551 Park Run Drive, Mail Stop D2Z
McLean, VA 22102-3110

Please note that we are unable to process comments received through communications methods other than those listed above, including telephone responses received through our customer service call centers, and comments that are submitted or postmarked after April 30.

We recognize that implementing the Code may require significant changes in appraisal practices and operational requirements for Freddie Mac Seller/Servicers, and encourage you to submit comments that will best assist in the implementation of the Code for all industry participants.

For more information


© 2008 Freddie Mac