Home Valuation Code of Conduct (HVCC) to be Eliminated
July 25, 2010 by Marney Kirk
Filed under Blog, Ruxton, Towson, West Towson
The Home Valuation Code of Conduct (HVCC) will be eliminated, thanks to a bill signed into law by President Obama.
HVCC was enacted in 2009, and has been a big issue in the appraisal battle many home sales have been experiencing.
In June last year, Tasha Linton and I wrote about how HVCC Could Negatively Affect Towson Home Values , because the appraisers assigned are the lowest cost one available, not necessarily from the area. Real estate is very local — for example, Towson neighborhoods are very unique — sometimes even street-by-street! An appraiser from outside of Washington, DC will not understand the neighborhood nuances, and this could tremendously effect an appraisal value.
The HVCC going away is a huge relief to many in the real estate community, and homeowners should be very pleased as well.
HVCC will be phased out over the next 90 days, with the end of October closing this sad chapter in real estate housing history.
Home Valuation Code of Conduct (HVCC) Could Negatively Affect Towson House Values
June 24, 2009 by Marney Kirk
Filed under Baltimore, Blog
From our esteemed guest blogger, Tasha Linton, of Atlantic Home Equity Mortgage, more details about the Home Valuation Code of Conduct (HVCC), enacted May 1, 2009, and how it is negatively affecting home sales.
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Here is the actual verbiage in the Home Valuation Code of Conduct. There are many concerns, as local, honest, fair and experience appraisers are being put out of business, and the AMC is collecting 40% as a referral fee — requiring the HOMEBUYER to pay MORE for an appraisal on any given property if they are using Fannie Mae or Freddie Mac for their loan.
The other issue that is coming up is that before the HVCC, an appraisal from one company could transfer to another mortgage company. Meaning, if a buyer wanted to switch lenders, they could fairly easily. NOW, that buyer must pay for a SECOND appraisal on the same property — at the inflated rate!
RESPA (Real Estate Settlement Procedures Act) lawyer, Marx Sterbcow, wrote an article that the Federal Deposit Insurance Corporation’s “Interagency Appraisal Evaluation Guidelines” will most likely top the HVCC, which is what we can all hope and wish for.
What does this mean for you, the Towson Homebuyer or Towson Homeseller? Appraisal values are coming in low because the AMC appraisers are not local and do not understand local markets. For homebuyers, if you change your mortgage company, you will have to pay for a new appraisal.
So far, a lose-lose situation for everyone in the real estate marketplace.
