HVCC – Why California Residents Need To Care About The Home Valuation Code of Conduct
The Home Valuation Code of Conduct (HVCC) is already having a negative impact on California real estate and mortgage transactions.
This recent article in the LA Times tells a better story about how HVCC is hurting mortgage brokers, real estate agents, appraisers, and consumers.
Your voice needs to be heard – please take the time to sign the Petition to Remove the HVCC
Quick History
After an investigation by New York Attorney General, Andrew Cuomo, into Fannie Mae and Freddie Mac Appraisal practices, the agencies agreed to adopt new changes to how appraisals are processed in the mortgage industry in exchange for an end to the investigation.
The centerpiece of the agreement is the HVCC, which contains many positive and common sense initiatives to help clean up the industry. However, some of the main points of this agreement may actually cause more harm than good.
To the consumer it means:
- Higher costs – if you have to change lenders or brokers a new appraisal may be necessary
- Increased time to fund loans – this may result in lock extensions and/or contract extensions on purchase transactions
- Having appraisers come from outside of the area that have no knowledge of the local housing market
- Having inexperienced, incompetent appraisers taking 50% less in income to perform the appraisal
- Homes are grossly undervalued
To the broker it means:
- No communication with the appraiser at all
- If a change in lender is required, a new appraisal is required
- All relationships with appraisers are rendered meaningless as of May 1, 2009
To the appraiser it means:
- Must use AMC’s (appraisal management companies) to obtain their business
- A loss in 40% or more of their income per appraisal
- No communication at all with anyone that is being compensated in the transaction
- AMC’s are not regulated
HVCC Petition Video – Watch This!
Related Articles:
- How Will the Home Valuation Code of Conduct Impact Las Vegas FHA Loans
- HVCC is up and Running. Is it helping or hurting?
- HVCC – I’m not making this stuff up.
- A $1325 Appraisal Fee – How the HVCC Awards Innefficiency at the Expense of the Consumer
- HVCC and Forest Gump
- What is HVCC and what does it mean to loan officers, Realtors and consumers?
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