1 Kentucky Housing Corporation Appraisal Company HVCC Memorandum by DerekSchouman


									                                     Kentucky Housing Corporation
                                         Appraisal Company
                                    HVCC Memorandum of Agreement

         THIS MEMORANDUM OF AGREEMENT ("Agreement") is made and entered into this ____ day of
__________, 2009, by and between KENTUCKY HOUSING CORPORATION, a de jure municipal corporation
and political subdivision of the Commonwealth of Kentucky, whose address is 1231 Louisville Road, Frankfort,
Kentucky          40601     ("KHC")       and     _________________________________             whose       address   is
_______________________________________, Kentucky ______________ ("Appraisal Company”).
         In consideration of the rights and obligations set forth below, the parties agree as follows:
         1.       Purposes of Agreement. KHC provides conventional loan programs offered through Fannie Mae.
Effective May 1, 2009, all single family housing units acquired with a conventional loan being sold to Fannie Mae
must meet the Housing Valuation Code of Conduct (“HVCC”) set forth in Fannie Mae announcement 09-01. The
HVCC has mandated to KHC the task of ordering all conventional appraisals on loans which are table funded by
KHC for lenders who are not approved Fannie Mae Seller/Servicers. KHC at its own discretion must establish and
maintain an appraiser roster to randomly assign appraisal requests. No Appraisal Company or Appraiser is
guaranteed to be on the list. To meet this obligation the parties enter into this agreement.
         2.       Participation Requirements.      Appraisal Company acknowledges and hereby represents the
following conditions to be satisfied for each appraiser listed on the attached Exhibit A prior to the execution of this
                  a.   The Appraiser listed is licensed and certified by the state of Kentucky to conduct real estate
                       appraisal services and will provide a copy of the license and insurance to KHC.
                  b.   The Appraiser is capable and qualified to perform conventional appraisals.
                  c.   The Appraiser is not identified on any watch list, including but not limited to Limited Denial
                       of Participation and General Services Administration (LDP/GSA).
                  d.   The Appraiser is in good standing with the Kentucky Appraisers Board.
                  e.   A $50.00 annual roster application fee has been paid for each appraiser upon signing this
This Agreement shall automatically terminate upon the lapse of any of the above mentioned antecedent conditions.
It is the responsibility of the Appraisal Company to notify KHC of any changes to the list of appraisers.
         3.       Performance of Services and Fees. Each Appraiser listed shall perform residential appraisal
services and KHC will pay the Appraisal Company at closing three hundred dollars and no cents ($300.00) for each
appraisal assessment performed provided that:
                  a.   The appraisal assessment was requested by KHC.
                  b.   The Appraiser does not accept payment for appraisal fee from the home buyer.
                  c.   The Appraiser performed the appraisal in accordance with Fannie Mae regulations, utilizing
                       the appropriate form.

                  d.    A copy of the appraisal is sent to KHC either electronically or by mail within
                        ___________days of the request.
                  e.    The Appraiser agrees to provide additional information or explanation about the basis for a
                        valuation and to correct objective factual errors in the appraisal report, and
                  f.    Appraiser agrees to report to KHC’s General Counsel or Director of Internal Audit, any act or
                        practice that impairs or attempts to impair their independence, objectivity, or impartiality or
                        violates any law or regulation, including, but not limited to, the Truth in Lending Act (TILA)
                        and Regulation Z, or the USPAP.
         The Appraisal Company shall be responsible for payment to the individual Appraisers.
         4.       The Term. If this agreement is initially effective between the months of July through December, it
must be re-executed by the immediately following July 1. (For example, if an agreement becomes effective
September 1, 2009, it must be re-executed by July 1, 2010.) If this agreement is initially effective between the
months of January through June, it must be re-executed by July 1 of the next year. (For example, if an agreement
becomes effective March 1, 2010, it must be re-executed by July 1, 2011). This agreement may be terminated at will
by either party upon 30 days'advance written notice.
         5.       Information. Appraisal Company agrees to provide KHC with preferred contact information and a
list of services provided for electronic distribution to the public. Neither the Appraisal Company nor any Appraiser
has any right to the distribution contemplated above. Such distribution is done for the benefit of the public at large;
any benefit to the Appraisal Company or the Appraiser is unintentional and incidental. KHC does not and will not
endorse any one appraiser over another. KHC will randomly choose any qualified Appraiser to from the list to
perform the appraisal. No representation shall be made by Appraisal Company or Appraiser that causes a third party
to believe Appraiser is endorsed by KHC or that the Appraiser’s overall work quality is preferable to that of another
appraiser because they have entered into this Agreement. Failure to comply with this section may at KHC’s sole
discretion, result in immediate termination of this Agreement and removal from the roster. Neither the Appraisal
Company nor any Appraiser is guaranteed to receive any appraisal requests. All appraisal requests will be assigned
at random based upon an appraisers service area and the property location.
         6.       Relationship of Parties and Indemnification. The relationship created by this Agreement is that of
an independent contractor, and nothing contained herein will be construed to be inconsistent with this relationship.
The Appraisal Company shall indemnify and hold KHC harmless from and against any loss, expense, damage, or
injury suffered or sustained by KHC by reason of any acts, omissions, or alleged acts or omissions arising out of any
of its Appraisers activities under this agreement, including, but not limited to, any judgment, award, settlement,
reasonable attorney fees, and other costs or expenses incurred in the defense of any actual or threatened action,
proceeding, or claim.
         7.       Miscellaneous.
                  A.        Prior Negotiations Merged. All prior negotiations and agreements between the parties
with respect to the subject matter of this Agreement are hereby merged herein, and no statement, agreement or
understanding not contained herein will be recognized or enforced unless in writing and of even date herewith or

subsequent thereto.
                  B.        Modification. No change or modification of this Agreement will be valid unless it is in
writing and signed by the parties except for those changes to the KHC Program Guide Book and Lender
Memorandums which are incorporated herein by reference.
                  C.        Parties Bound. This Agreement will inure to the benefit of, and be binding upon the
parties, their legal representatives, successors and assigns.
                  D.        Governing Law.         This Agreement will be construed pursuant to the laws of the
Commonwealth of Kentucky.
                  E.        Section Headings. The section headings have been included in this Agreement solely for
the convenience of the parties and are not to be deemed a part of this Agreement or material to its construction.
                  F.        Invalid Provisions.     Should any provision of this Agreement be deemed invalid or
unenforceable, it will not affect the other provisions of this Agreement, and this Agreement will be construed in all
respects as if the invalid or unenforceable provisions were omitted.
                  G.        Notices. All notices provided for or given under this Agreement will be in writing and
will be deemed given when personally delivered or when mailed by certified mail, return receipt requested, to the
last known address of the party.
                  H.        Force Majeure. Neither party shall be liable for any failure to perform its obligations
under this agreement where such failure is a result of an extraordinary event or circumstance beyond the control of
the parties, such as war, strike, riot, crime, act of nature (e.g., flooding, earthquake, volcano), prevents one or both
parties from fulfilling their obligations under this agreement.
                  I.        Compliance with Laws. Each of the parties hereto shall comply with all existing and
future federal, state and local laws. While performing services pursuant to this Agreement, the parties agree to
comply with all policies, rules and regulations.

         To indicate their understanding of and agreement to the terms of this Agreement, the parties have executed
this instrument on the ____ day of ___________, 2009.

KENTUCKY HOUSING CORPORATION                                           _________________________________

By:________________________________                                    By:______________________________

Title:______________________________                                   Title:____________________________

                EXHIBIT A

Name   Contact Number       License #


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