What does the HVCC mean for Realtors and Consumers?
by Tom on April 8, 2009
in house prices
The Home Valuation Code of Conduct essentially puts a wall between mortgage lenders and appraisers so that there can be no “influencing” of appraisers to manufacture false values.
So, what does it mean for Realtors and consumers?
- It means that you can’t expect an appraisal to be done in 3 days any more.
- It means that you can’t get an appraisal done with one lender and take it to another lender.
- It means that your lender no longer has “control” over which appraiser and/or the quality of the appraisers. That control has all been “taken over” by the appraisal management company.
- It means that it’s important to work with a lender who is on top of things and plans ahead.
Any questions about the HVCC, let me know……
Survey: Lenders Not Yet Ready for HVCC : HousingWire || financial news for the mortgage market
It’s not garnering as much press as it perhaps should, but new appraisal guidelines set forth in the Home Valuation Code of Conduct are set to go into effect on May 1 — and a recent study suggests that while U.S. mortgage lenders are confident their systems will be ready, few say they have actually completed system upgrades designed to ensure compliance.
Although I do not support the HVCC, the points raised in your post are entirely incorrect. It is one thing to oppose the agreement between the NY AGs office and Fannie Mae and Freddie Mac and entirely different thing to perpetuate misinformation in an effort to confuse the facts.
HVCC does not affect turn time on appraisal assignments, access tot he property, and proper submission of necessary data have the greatest influence on turn time.
Lenders have always been permitted to transfer an appraisal directly from one lender to another and under federal banking regulations the second lender may then rely upon the report obtained by the initial lender.
In accordance with the HVCC, federal banking regulations, Fannie Mae and Freddie Mac policies, guidelines and regulations, the lender has sole responsibility for overseeing the appraisal process,from ordering, to review and acceptance. Appraisal management companies may be used and part of the process, however, lenders may not delegate the responsibility.
In regard to your last point, here we are in total agreement.
Rather than perpetuate confusion, lets focus on the facts and therefore be in a position to better serve the client/borrower, real estate agents and the public overall.
Howard,
It’s interesting that you say that. I’m speaking from personal experience because the bank that I write mortgages for has been adhering to HVCC since January 12.
I’d like to hear more on how a lender can transfer an appraisal to another lender and still be within HVCC guidelines. The data I have says contrary to that.
Tom