Clarification, Some Change Coming to New HVCC Appraisal Rules

As some of you know, the new Home Valuation Code of Conduct (HVCC) was supposed to be a good thing for consumers and the mortgage and real estate industries. But it had quite the opposite and negative effect.

But that may be (slowly) changing. The National Association of REALTORS® along with several other groups voiced their opinion to the New York Attorney General’s office, the Federal Housing Finance Agency and Fannie Mae.

The result? New HVCC/appraisal “guidance” for lenders.

The two main issues have been addressed (in theory – we’ll have to see what happens in real life)…

1. Inexperienced appraisers conducting appraisals in areas they don’t know much, if anything at all about.
2. Inaccurate appraisals (mainly due to issue number 1 above) with no way to formally object and a total lack of willingness by the appraiser to correct the appraisal.

Make sure you check out the post over at VAR Buzz that goes into more detail about the new “guidance” and clarifies things in greater detail (there’s also a link to Fannie and Freddie’s updated FAQ sections at the bottom of the VAR buzz post).

We’re far from seeing the issues completely resolved, but it’s a start…