How do YOU think the Home Valuation Code of Conduct (HVCC) is impacting real estate transactions in your area?
From NAR’s Home Page on the HVCC, in case you are not familiar with the issue:
“The Home Valuation Code of Conduct (HVCC) establishes standards for solicitation, selection, compensation, conflicts of interest and appraiser independence. It is effective May 1, 2009, for any mortgage that will be sold to Fannie Mae or Freddie Mac; Federal Housing Administration (FHA) and Federal Home Loan Bank (FHLB) mortgages are not covered in the agreement.”
The HVCC resulted from an agreement between New York State Attorney General Andrew Cuomo and Fannie Mae and Freddie Mac. And while it may have been motivated by the good intention of helping to eliminate conflicts of interest in mortgage appraisals, a recent survey of REALTORS® by NAR indicates that the implementation of HVCC is having several adverse impacts, including delayed and cancelled transactions, and increased costs for consumers. The survey also indicates REALTORS® are concerned with the quality of appraisals, and the use of appraisers that are not familiar with the geographic area in which they are appraising.
The NAR is leading quite an informational and lobbying effort on this issue, aimed in part to get at least a temporary moratorium on the HVCC. See this link for more info on the survey and lots of other resources. http://www.realtor.org/government_affairs/gapublic/gses_hvcc_announced
In Illinois, we are voicing our concerns to our Congressional delegation, meeting with Attorney General Lisa Madigan, discussing the pursuit of legislation to regulate appraisal management companies (AMCs), and discussing the issue with the IDFPR. We’ll keep you apprised of developments as they occur.
What have your experiences been? Hearing your stories will help us make our case to policymakers. Please share. Feel free to post your comments here, or email me at firstname.lastname@example.org