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
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