IV-C.
In
underwriting a loan, the lender shall not use an appraisal report
prepared by an entity that is affiliated with, or that owns or is
owned, in whole or in part by, another entity that is engaged by the
lender to provide other settlement services, as that term is defined in
the Real Estate Settlement Procedures Act, 12 U.S.C.§ 2601 et seq., for
the same transaction, unless the entity that provides the appraisal:
(1)
has adopted written policies and procedures implementing this Code of
Conduct, including, but not limited to, adequate training and
disciplinary rules on appraiser independence (including the principles
detailed in this Code of Conduct) and has mechanisms in place to report
and discipline anyone who violates these policies and procedures;
(2)
recognizes that, once the Independent Valuation Protection Institute is
established, the Institute will receive complaints for review and
referral regarding non-compliance with the Code of Conduct. Referrals
and reports shall be made to Fannie Mae and/or Freddie Mac regarding
such complaints and the Institute will provide information on the
results of its review of such complaints to Fannie Mae and/or Freddie
Mac and make them available to the other parties to the Home Value
Protection Program and Cooperation Agreement.