Home Valuation Code of Conduct (HVCC) rules go into effect on May 1, 2009. The rule which takes effect on all Freddie Mac and Fannie Mae loans is highly controversial in the real estate industry. These new rules are devaluing Real Estate inventory. This is hurting sellers and buyers. Because of the new guidelines, properties are declining drastically in value. No long does it matter what shape a home is in. It does not matter if granite counter tops of cherry wood cabinets. Square feet is the determining factor.

Brand new homes are value the same as distressed properties. Banks are the only winners here. Buyers contracts are being canceled due to low appraisals, as well as sellers. If the HVCC stands, new home starts will cease to continue. We wil lose one of the largest parts of our economy and the recession will worsen.

The HVCC must be overturned.