The Home Valuation Code of Conduct
Posted On: May 1st, 2009 by James Posted In: Government Actions • Mortgage Programs • Portland Real Estate
Well, its finally here. the HVCC! (it stands for Home Valuation Code of Conduct) What does this mean? Well it means that all mortgage companies can NO LONGER order their own appraisals for Conforming mortgages. This is NOT a law, but is basically new stricter guidelines regarding appraisals. Fannie Mae is attempting to create a “wall” between lenders and appraisers for the purpose of “REMOVING INFLUENCE” of lenders on the value of properties. So for my company Mortgage Trust, we now have a blind and random pool of appraisers from which to access. When we need an appraisal ordered, we have staff members that will initiate that for us. These staff members are restricted to those who have NOTHING to gain by the closing of the mortgage. They are not commission based etc. So therefore they will have no influence on the value. Our appraisal requests will NO LONGER have any indication of what we think the value will be.
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