Answer:
It's not a regulation. It is part of the Home Valuation Code of Conduct (HVCC) adopted by FHLMC and FNMA, and is a requirement imposed on lenders who may later package and sell loans to either of those government-sponsored entities or to any other purchaser of home loans that imposes the requirements of the HVCC on its sellers.You can get information on the HVCC on the FHLMC (Freddie Mac) website.
First published on BankersOnline.com 11/09/09