One of the most challenging little monkey wrenches in the financial recovery in housing has been disabled:
http://www.inman.com/news/2010/07/16/goodbye-home-valuation-code-conduct
But wait! There's more... Take a look at some of the other comments/parts of this new legislation...
"The bill creates a new Bureau of Consumer Financial Protection that's charged -- among many things -- with drafting new interim final regulations that specifically define acts or practices that violate the bill's appraisal independence requirements."
What is that going to bring us? Bureau of Consumer Financial Protection?
"Fannie and Freddie on June 30 put lenders on notice that they must use appraisers with local experience who can access records on recent sales in markets where they are being asked to provide valuations."
But are we still going to see deals killed due to AVMs? AVM is computer generated value, like Zillow uses.
"The appraisal independence requirements of HR 4173 provide that AMCs register with state agencies, and stipulate that lenders and AMCs pay "reasonable and customary" fees to appraisers. Violators will be subject to penalties under the Truth in Lending Act."
This should help good appraisers, right? I hope so.
These are just a few points. There are more.
While I love the fact that HVCC is gone, I am concerned about what HR 4173 really brings that is good.
Your thoughts?
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