Obama Signs Bill Which Eliminates HVCC
In recent news, the Home Valuation Code of Conduct (HVCC) is set to be eliminated in three months as a result of President Obama signing the Dodd-Frank Act last week.
The HVCC was put into place by the Federal Housing Finance Agency or FHFA during the spring of 2009. This program was created so that lenders and third parties could not influence appraisals. The regulation has seen its fair share of controversy which led to a higher demand for AMCs, as well as many complaints from appraisers who work independently – claiming that they have been cut out of the market.
Congress will write a new set of appraisal independence standards sometime during the next two months. The new bill will allow Freddie Mac or Fannie Mae to accept appraisal reports that are completed by an appraiser chosen or hired by a mortgage loan originator. This will almost certainly allow more competent appraisals to be done in the Arlington and Mansfield real estate markets.
A new stipulation will be included which states that lenders and their agents have to pay appraisers at current market rates. The reform also will subject loan originators to laws (both state and federal) that prohibit them from making promises or threats to an appraiser which could influence the service being provided.
1 comments:
This law is so controversial. In my opining we should have some kind of a point system that rates appraisers (and lenders)long term by their performance on how many of their clients are under or facing foreclosure.
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