H1N1 is on the back burner, but HVCC is about to boil over
News regarding the H1N1 virus (also known as the swine flu) has seemed to have gone on hiatus. No doubt it will rear its ugly head come winter. Right now, the hot topic among home buyers and sellers and their real estate agents is HVCC: the Home Valuation Code of Conduct. The code - aimed at improving the ”integrity of the home appraisal process” - has real estate agents, mortgage brokers and their clients up in arms.
What it boils down to is the code says that banks and mortgage brokers who sell conventional loans to Fannie Mae and Freddie Mac ”cannot hand-select their own appraisers” any longer. An appraisal management company must choose an appraiser from its own wellspring of them. This, in effect, is to prohibit lending institutions from having undue influence upon appraisers. Instead of helping, many feel the code has confused buyers and sellers and frustrated the sale of many homes.
- Take some time and read the HVCC for yourself.
- Fannie Mae has provided a series of Q & A regarding HVCC that you should find helpful.
- Finally, read how Elizabeth Weintraub, a 30-year veteran in real estate, answers the question of HVCC affecting a home appraisal.
Most of what I’ve read has been unfavorable regarding this revised code of conduct. As a buyer or a seller, you owe it to yourself to be apprised of these tenets, which can only help you to make an informed decision regarding your real estate transaction.
TALK BACK: Has the HVCC affected your home purchase or sale? How? Post your comments below.
Posted by Sharon Walker
