Good morning all: Today is the third day of HVCC, better known as the Home Valuation Code of Conduct. Until our internal company memo. last Thursday, I honestly didn't know how the new appraisal law would be implemented. Now I do.
In my company, all appraisals will be ordered by one of our senior executives from an approved list. My appraiser is really disappointed. I think his reasoning is all the relationships he built over time (including the one with me) are gone for now. I personally think the good appraisers will do just fine with the new system. Let's face it; they're busy right now.
But as Russ Ravery pointed out here on Active Rain, the new HVCC law will slow down the process and will probably be more expensive for the consumer. If an appraisal comes in below the value needed, what does a person do then? We probably order a second appraisal increasing the cost and time needed to do the transaction.
To me, it's interesting that the system was correcting itself without intervention. It usually does. Recently, I had to have a client pay for two appraisals as the lender didn't like the first one due to its model. With home values still on the decline, appraisers were often getting very conservative with their reports. It will be interesting to see how long it takes before HVCC is tweaked. I give it about a year. In the meantime, all of us lenders will be utilizing different methods to determine value. Realtors: you may be fielding a few calls from me to see what you see before I submit a loan.
As always, I welcome your feedback. What do you think? What are you seeing? Have a great day today!
Comments(9)