Wed 10 Jun 2009
Will the HVCC Nightmare Ever End?
Posted by Tracey Rumsey under Appraisals, Compliance
1 Comment
In five short (or long, depending on your perspective) weeks, the Home Valuation Code of Conduct (HVCC), effective May 1, 2009 has brought a huge sector of the mortgage world to its knees, begging for mercy. Just when the lending wheels of the economy’s engine were starting to turn again thanks to lower interest rates and first-time homebuyer tax incentives, the sludge of HVCC are shutting them down.
These unregulated Appraisal Management Companies (AMCs) that are the vehicle through which many lenders have to now work to order an appraisal, are a joke, to put it mildly. Appraisal orders aren’t acknowledged, turn-around times are slow, fees are higher, local market expertise is gone so values are ridiculous, and the folks paying the price are the consumer. Our borrowers. The ones the legislation was supposed to be protecting.
In addition to the above problems, I’ve heard of a loan officer who ordered an FHA appraisal (required by their particular investor even though HVCC doesn’t cover government insured loans) only to wait three weeks and finally receive a conventional appraisal that was useless to her.
The National Association of Mortgage Brokers issued a “Call to Action” today that I highly endorse. Please take a moment to email hvcc@namb.org and tell them your horror stories.



