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Appraisal ordering Policies (Home Valuation Code of Conduct - HVCC)

By
Mortgage and Lending with CNN Mortgage

New Appraisal ordering Policies (Home Valuation Code of Conduct - HVCC) mandated by the Agencies is creating operational challenges among lenders.  Time will tell if this is actually resolving the problem it was meant to solve.  In Practical Application, HVCC has had the immediate effect of increasing the cost of homeownership to the consumer and lengthy delays in processing applications.  One of the Broker support companies is issuing a petition to raise awareness of the issues HVCC is creating.  This link takes you to the petition:  http://www.hvccpetition.com/  Look at the comments made by originating mortgage companies if you want to know why it is taking such a long time to get your loan funded.  For years, originating mortgage companies have masked the burden of how difficult it can be to get a loan to the closing table in an effort to make the home financing experience as pleasant as possible.  In this market of ever increasing tightening credit and policies like the HVCC, it is becoming more and more difficult for lenders to mask operational challenges.  I would like to see revisions to this HVCC that would flatter our industry and create a win-win situation for our clients, mortgage companies, our country, and protect the global economy.

Rate Activity

Pricing improved a little yesterday afternoon and we see better rates this morning.  Bernake is speaking about the economy this morning.

Best conforming 30 yr fixed rate 5.125% no points (APR 5.198%) 80% LTV, $250,000 ln amt, 720 FICO, OOC

Best FHA 30 yr fixed rate 5.000% w. 0.500 points (APR 5.223%)  96.5% LTV, $150,000 ln amt ,680 FICO, OOC

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