Tuesday, December 1, 2009

IVPI Promises = Vaporware

We're just counting the days. It's been 7 months (215 days) since the implementation of the Home Valuation Code of Conduct (minus the Independent Valuation Protection Institute) and 2 months (62 days) since Freddie Mac updated their Home Valuation Code of Conduct Q & A Page with the Home Valuation Code of Conduct Interim Complaint form and it's announcement the IVPI Website would be up and running in November. Today is December 1, 2009.

Check the LINK provided by Freddie Mac for the IVPI site. You didn't really expect anything, did you?

Well, if Freddie has not created the promised IVPI, what have they been up to?

There has been a claim by Freddie Mac the HVCC has improved appraisal quality. Of course, the claim is supported only by anecdotal evidence that 15% more appraisals have come acceptably close to the automated valuation model it runs as a check.

Freddie has hired a new CFO.

The government-controlled mortgage finance company is giving CFO Ross Kari compensation worth as much as $5.5 million. That includes an almost $2 million cash signing bonus and a generous salary that could top $2.3 million.
Freddie announced on November 6th, it had posted a $5,000,000,000 loss.

Freddie Mac, the second largest provider of U.S. residential mortgage funding, on Friday posted a loss of $5 billion in the third quarter and predicted it would need more government support amid a "prolonged deterioration" in housing.
In more "good" news, Freddie warned their losses related to the bankruptcy of lender Taylor, Bean & Whitaker may increase.

The claim could add to the fallout from the Taylor Bean bankruptcy, which came after the government suspended its relationship with the firm. Freddie Mac has previously said its exposure to Taylor Bean's obligations to repurchase loans was about $500 million as of Sept. 30.

While total exposures to Taylor Bean are unknown, "the amount of additional losses related to such exposures could be significant," the McLean, Virginia-based company said in a filing with the Securities and Exchange Commission.

If you were inclined to give Freddie Mac (and Fannie Mae) the benefit of the doubt, our suggestion is to avoid holding your breath waiting for the IVPI. Why don't these folks come clean and admit wishful thinking will not make it happen?


Anonymous said...

Perhaps they had to use the money set aside for the IVPI to pay Freddie Mac's new CEO $5.5 million dollar salary.

I think it would show true genius if they would pay him in Freddie Mac stock rather than a salary? That would give him some true incentive to turn a deadbeat entity around.