Home Valuation Code of ConductHome Valuation Code of Conduct

Correspondent TrainingApril 22, 2009

1:30 – 2:30 PM ESTDial In: 1-888-790-2750

Pass Code: HVCC

Agenda

Introduction Overview of the Home Valuation Code of Conduct (HVCC)Loan Program RequirementsAppraiser Engagement Requirements and SelectionTransferring AppraisalsProhibited ActivitiesBorrower Receipt of AppraisalRepresentations and Warranties Question & Answer Session

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Overview

The purpose of this training is to provide an overview of the Fannie Mae and Freddie Mac Home Valuation Code of Conduct. The Home Valuation Code of Conduct is effective on all loan originations dated on or after May 1, 2009.

The code is intended to reinforce the independence of the appraiser. It establishes requirements governing: • appraisal selection, • solicitation, • compensation, • conflicts of interest, and • corporate independence.

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Loan Program RequirementsThe Home Valuation Code of Conduct applies to all one to four (1 - 4) unit single family properties secured by a conventional loan as noted below.

Loan ProductsLoan Products Code of Conduct ApplicableCode of Conduct Applicable

•Agency (all LTV/TLTVs)•Agency Affordable•Agency Plus•DU Refi Plus™•Key Loan•Portfolio Affordable Housing

YES

• FHA

• VA

NO

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Appraiser Engagement and Selection

An appraiser must be licensed or certified by the state in which the subject property is located.

The lender is responsible for selecting and compensating the appraiser.

The appraiser cannot be on the SunTrust List of Ineligible Appraisers or Ineligible Appraisal Companies.

The lender is not allowed to accept any appraisal report completed by an appraiser who was selected or compensated by a third party such as a mortgage broker, property owner or real estate agent.

The lender is not allowed to use an appraisal report prepared by an entity that is affiliated in any way with the company providing the settlement services unless the entity has established formal written policies and procedures implementing the HVCC.

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Transfer of AppraisalsLenders may use an appraisal report prepared for another lender and the

appraisal can be assigned / transferred from one lender to another; however, the original lender / client information cannot be changed or altered.

If an appraisal was completed on behalf of another lender and transferred to the Correspondent, the Correspondent is responsible for ensuring the appraisal was obtained in accordance to the Home Valuation Code of Conduct.

A sample of the language used when receiving a transferred appraisal: “ _________hereby transfers ownership and custody of the attached appraisal report for the above referenced Loan or Application to ____. _____________ hereby certifies, represents and warrants that it has complied with all applicable requirements of the Fannie Mae/Freddie Mac Home Valuation Code of Conduct in connection with the above-referenced loan. __________acknowledges and agrees that ______is relying in good faith on these certifications, representations and warranties in accepting ownership and custody of the attached appraisal report.”

Form COR 0046 is a sample of the Transfer of Appraisal.

Prohibited ActivitiesMembers of the Production staff and those employees who benefit from the

closing of the loan, are not allowed to select, retain, recommend or influence the selection of an appraiser for a specific appraisal assignment.

No employee, director, officer, agent of the lender, or third party, can influence the results of an appraisal. Examples include:

withholding or threatening to withhold timely payment or partial payment,withholding or threatening to withhold future business,promise or imply a promise of future business, requesting the appraiser to provide an estimate value or comps prior to the

appraiser completing the appraisal, providing an appraiser with a desired or target value.

All members of the loan production staff and those members who receive paid commission based upon the successful closing of a loan transaction are not allowed to have any communications with an appraiser or appraisal management company relating to or having an impact on valuation. Production staff includes, but is not limited to, the following employees: Loan Officers, Loan Officer assistants, Account Executives, and Operations or Branch Managers.

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Borrower Receipt of Appraisal

The lender must supply the borrower with a final version copy of the subject property appraisal report upon completion, or at the latest, three (3) business days prior to closing the loan transaction.

If the borrower chooses to waive receiving a copy of the appraisal report three (3) business days prior to closing, the loan file must be documented with a waiver form signed and dated by the borrower.

The waiver form must be signed and dated prior to the loan closing.

The borrower is responsible for the initial cost of the appraisal, but thelender cannot charge the borrower for a copy of the appraisal.

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Representations and Warrants

The lender shall certify, represent and warrant that all appraisals are obtained in compliance with the Home Valuation Code of Conduct.

If it is determined the lender is in breach of a material aspect of the Code, SunTrust will enforce all applicable rights and remedies, including suspension or termination of the lender’s eligibility to sell loans to SunTrust.

The Correspondent Fraud Prevention Certification form (COR 0601) must be completed in its entirety and signed by an authorized representative of theCorrespondent lender.

Question and Answer Session

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Thank You for Attending

Instant Replay: Instant Replay: 888888--562562--68096809Available until May 8, 2009 Available until May 8, 2009

No password is required for the replayNo password is required for the replay

Resource Center Contact InformationResource Center Contact Information

CorrespondentCorrespondentToll Free Phone: 800Toll Free Phone: 800--382382--2111, Option #1 and #2111, Option #1 and #22

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