There is considerable concern regarding the set of the rules which were created to prevent those who stand to profit from a real estate transaction from putting pressure on the property appraiser. These rules are called Home Valuation Code of Conduct or HVCC for short. These new rules went into effect on May 1, 2009. They apply to all conventional, single family loans destined for sale to Fannie Mae or Freddie Mac. The rules prohibit mortgage lenders and real estate brokers from ordering appraisals and require that lenders erect a firewall between the loan production staff and the appraiser. It is intended to assure that the lenders funding decision is sound.
This certainly sounds reasonable. Yet there is much debate and worry that despite the intent being very good, in practice, these rules are hurting the lenders and consumers. They are causing more challenges and slowing the recovery in the housing market. There has been a significant number of articles and blogs written about this subject. If you are interested in learning more about the specifics pertaining to the pros and cons a quick Google search of HVCC will result in some excellent reading.
I would like to share my recent experience from an appraisal with you. The appraiser and I spoke on the phone. She was very professional and experienced. Her focus was on doing the best appraisal she could. She expressed a willingness to consider any market facts that I wanted to share. She asked good questions about the material facts regarding the subject property and the community. Past appraisals had given her a good understanding of the community and the area. The on site appraisal she conducted took nearly two hours to complete. It was a very high quality and professional appraisal.
My recent experience demonstrates that despite some of the challenges pertaining to HVCC, good appraisals are taking place. It's no surprise that one of the most important factors is good quality communication. Real Estate sales professionals and lenders can speak with appraisers. We must all take responsibility for good communication and reach out to each other. Lenders and consumers should really follow up during the process to make sure that good communication is flowing. It is clearly in your best interests to do so.Labels: Appraisals, Communication, HVCC, real estate
