FHA delays HVCC implementation for San Jose Home Loans until February 15, 2010. This was originally planned for a January 1, 2010 implementation. But, FHA announced today that the enactment of Appraiser Independence has been delayed.
The new rule by FHA prohibits San Jose mortgage brokers and commission-based lender staff from ordering the appraisal. They can not even dispute or discuss the home value directly with the appraiser even after the appraisal is done. Since implementation of the Home Valuation Code of Conduct (HVCC) for conventional loans in May 2009, many challenges and difficulties with appraisals have been reported, such as low appraisals, inexperienced appraisers, out-of-area appraisers unfamiliar with a local neighborhood, and problems with Appraisal Management Companies (AMCs).
If you are planning to buy your first home in San Jose using an FHA home loan, you would definitely welcome this move. However, you may like to start the process before February 15th to avoid getting caught into the HVCC mess. Call me at 408.905.6261 to find out what are the loan requirements for an FHA Loan in San Jose and how you can get started with the home buying process.
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