Things are constantly changing so fast it makes you want to just unplug your TV, radios, and sit in a quiet place until things settle down! Which brings us to the HVCC (Home Valuation Code of Conduct). When we first heard about it back in March of 2008, it seemed like we all received an onslaught of emails and newsletter "blips" about the pros and cons practically every day! So, we strived to stay on top and keep current with all the constant changes.
I know I have been inundated with requests to "explain" the HVCC and what it means in a "nutshell", so thanks to a terrific seminar yesterday with Jay K Delich, SRA, SCRP, IFA, which I was fortunate to attend, here it is:
Here are a few major points:
- *CMA's and Comp Requests will not be allowed.
- *Mortgage brokers will not be allowed to order appraisals.
- *Mortgage brokers or loan officers cannot request specific appraisers.
- *COD payment for appraisals will not be allowed.
- *Value pressure on appraisers will not be allowed.
- *Owner's values or hoped for values cannot be communicated
- *Blacklisting" cannot be done without notice to the appraiser
- *"Value Shopping" by the lender is not allowed.
- *Withholding timely payment is prohibited.
- *Borrowers must be supplied a copy of any appraisal.
- *Required 10% re-appraisal or review of reports.
- *Lenders will be held accountable for appraisal quality.
- *LENDERS will be REQUIRED to report appraisers to State Boards of Real Estate Appraisers if appraiser misconduct is suspected.
And, finally, the lender MUST provide a copy of the appraisal to the borrower not less than 3 (three) BUSINESS days prior to closing.