Home Valuation Code of Conduct
Sunday, September 6, 2009
Almost every buyer seems to be frustrated about the home buying process…well they certainly should be! The inventory of homes, active listings has been delayed for months, due to foreclosure moratoriums. Usually, the home has a sale pending or ten offers waiting for an answer which never comes. Well, another problem which many home buyers are not aware of is called Home Valuation Code of Conduct (HVCC).
The Home Valuation Code of Conduct (HVCC) establishes standards for solicitation, selection, compensation, conflicts of interest and appraiser independence. REALTORS® and mortgage brokers are prohibited from selecting appraisers. It was effective May 1, 2009, for any mortgage that will be sold to Fannie Mae or Freddie Mac.
All summer real estate transactions have been delayed, re-negotiated and cancelled. According to a July 2009 survey of REALTORS®, 76 percent of respondents said the length of time to obtain a completed appraisal report increased after May 1, 2009. More than one third of REALTORS® have lost at least one sale because of a delay in the appraisal process.
