What has YOUR HVCC Experience Been?

How do  YOU think the Home Valuation Code of Conduct (HVCC) is impacting real estate transactions in your area?

From NAR’s Home Page on the HVCC, in case you are not familiar with the issue:

“The Home Valuation Code of Conduct (HVCC) establishes standards for solicitation, selection, compensation, conflicts of interest and appraiser independence. It is effective May 1, 2009, for any mortgage that will be sold to Fannie Mae or Freddie Mac; Federal Housing Administration (FHA) and Federal Home Loan Bank (FHLB) mortgages are not covered in the agreement.”

The HVCC resulted from an agreement between New York State Attorney General Andrew Cuomo and Fannie Mae and Freddie Mac.  And while it may have been motivated by the good intention of helping to eliminate conflicts of interest in mortgage appraisals,  a recent survey of REALTORS® by NAR indicates that the implementation of HVCC is having several adverse impacts, including delayed and cancelled transactions, and increased costs for consumers.   The survey also indicates REALTORS® are concerned with the quality of appraisals, and the use of appraisers that are not familiar with the geographic area in which they are appraising.

The NAR is leading quite an informational and lobbying effort on this issue, aimed in part to get at least a temporary moratorium on the HVCC.  See this link for more info on the survey and lots of other resources. http://www.realtor.org/government_affairs/gapublic/gses_hvcc_announced

In Illinois, we are voicing our concerns to our Congressional delegation, meeting with Attorney General Lisa Madigan, discussing the pursuit of legislation to regulate appraisal management companies (AMCs), and discussing the issue with the IDFPR.  We’ll keep you apprised of developments as they occur.

What have your experiences been? Hearing your stories will help us make our case to policymakers.  Please share.  Feel free to post your comments here, or email me at gstaubin@iar.org

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About Greg St. Aubin

Greg St. Aubin is Director of Governmental Affairs for the Illinois Association of REALTORS®. He carries out and supervises the implementation of the governmental affairs programs, policies, and positions of the Association. He provides input on the formulation of IAR positions on public policy issues, and advocates the Association’s positions through direct contact with state, local, and federal lawmakers and other officials, and through interaction with other interest groups. He directs and supervises the Governmental Affairs staff. St. Aubin provides staff support to the Public Policy and Government Affairs Member Involvement Group, the REALTORS® Political Action Committee, and various task forces and working groups which are appointed from time to time.

One thought on “What has YOUR HVCC Experience Been?

  1. Good Morning,
    The independent enforcing body is nonexistant. Without legal enforcement of the HVCC, lenders continue to treat the HVCC and the 1004MC form as a checkoff box for underwriting. The AMCs I work for actually are doing a better job than I anticipated. I view Illinois proposed appraisal regulations changes as positive and a potential role model for the country.

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