The Appraisal Rules Could Be Changing
HVCC, short for the “Home Valuation Code of Conduct,” imposed by Freddie and Fannie may be on it’s way out after a bipartisan amendment was approved on October 22, 2009.
The HVCC code restricted lenders from speaking directly with appraisers during the appraisal process to ensure the integrity of the appraisal value so that it would not “hit the value” needed to make the sale go through.
Though the intention of the HVCC code was good, many felt that it was actually having a negative effect on market values and restricting the increase in home values that many areas have been experiencing. If the amendment is passed it will be replaced by a new consumer financial protection bill. I will keep you updated…
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