Have you heard of the HVCC?

Fannie Mae’s Home Valuation Code of Conduct (HVCC) went into effect on May 1, 2009.  The original intention of the HVCC was “[t]o help enhance the integrity of the home appraisal process in the mortgage finance industry…in March 2008, Fannie Mae entered into an agreement with [its] regulator – the Federal Housing Finance Agency (FHFA) (then the Office of Federal Housing Enterprise Oversight) – and the New York Attorney General’s office to adopt certain policies relating to appraisals for loans delivered to [Fannie Mae].”1

You can see the details of the HVCC here.

Unfortunately these new guidelines have led to some very adverse unforeseen consequences for buyers and sellers: consumers paying higher appraisal fees; inaccurate appraisals; increased appraisal times; lost sales; and failed escrows.2  See the results from this recent survey of REALTORS nationwide here.

Recently, NAR President Charles McMillan met with Federal Housing Finance Agency (FHFA) Director James Lockhart and Fannie Mae CEO Mike Williams to raise these concerns about the impact of the Home Valuation Code of Conduct (HVCC) on the housing market. FHFA Director Lockhart indicated he will consider issuing a press release clarifying issues raised by the HVCC and its implementation.3

Do you have a recent appraisal related story to share?  If so, comment below.


1 https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/appcode/pdf/hvccfaqs.pdf

2 http://www.realtor.org/research/economists_outlook/commentaries/appraisals0709

3 http://www.realtor.org/fedistrk.nsf/pages/wk07062009?OpenDocument#report_8_07_06_2009


About Guy Johnson

I am a licensed Nevada REALTOR® living and working in Reno, Nevada. Give me a call at 775-722-4011. My team and I will be happy to assist you with your real estate needs.
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3 Responses to Have you heard of the HVCC?

  1. Avatar lasvegasgal says:

    Of course the realtors hate it. From my perspective, realtors dislike it because they can no longer feed business to appraisers that will support the contract price. Who cares what the house is really worth. So long as some idiot is willing to pay more than it is worth, why shouldn’t we get an appraisal to support that price. After all the more it sells for, the more we make.

  2. Avatar smarten says:

    Used to be that under RESPA consumers had the right to hire any certified/licensed provider of real estate services of their choosing related to a real estate closing. This allowed consumers to “shop” for such services in order to secure the most competitive cost. With this new legislation, that no longer is the case. In our particular situation that meant the cost of an appraisal and tax reporting service. Both were provided by a third party “related” to our lender wherein our fees were higher than they otherwise received a fee for the “referral.” We were given no choice in the process, even though the lender presented us with a document which recited the exact opposite [a document we signed under duress and disputed on its face (we’re pursuing refund of the excess fees paid)]. Not fair!

  3. Avatar currency says:

    and when i get another one like the mini ones i can have internet for it wooooooooh

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