San Diego California Real Estate- Update on HVCC crisis affecting San Diego Homeowners

In my recent post discussing some of the difficult problems with the HVCC rules implemented in May 2009, I received this bulletin forwarded from a  local mortgage broker here in San Diego. In involves a new bill before the House of Representatives to suspend for 18 months the new HVCC guidelines that affecting the quality of appraisals here in San Diego and across the nation. Here is the bulletin I received last night.

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NAMB APPLAUDS BILL TO SUSPEND HVCC
IN NEWS - RESIDENTIAL MORTGAGE
BY JOHN CLAPP ON TUESDAY 30 JUNE 2009


The Home Valuation Code of Conduct (HVCC) may be suspended for 18 months, if one recently introduced piece of legislation has the legs to move through Congress. H.R.3044, introduced by Rep. Travis Childers, D-Miss., on June 25 and co-sponsored by Rep. Gary Miller, R-Calif., looks to impose a year-and-a-half moratorium on the heavily debated appraisal code.

Last week, National Association of Realtors Chief Economist Lawrence Yun suggested that “faulty valuations” slowed home sales transactions in May - the month the HVCC became effective.

H.R.3044 has found the support of at least one trade group, the National Association of Mortgage Brokers (NAMB). The organization’s president, Marc Savitt, released a statement urging Congress to swiftly pass the bill.

“In the period of time since its implementation, the HVCC has increased costs to consumers and decreased the quality of appraisals, and has provided a level of uncertainty in an ailing housing market,” Savitt said in the statement. “Tens of thousands of consumers have already been robbed of their opportunity to enjoy historically low rates by Attorney General Andrew Cuomo’s rule.”

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Here is the a link to the article I wrote here in ActiveRain discussing how these changes are affecting many appraisals affecting the sale of real estate.  My post was titled " The Unintended Consequences of Change".