Home Appraisal Rules Have Changed As of May 1, 2009

By
Real Estate Broker/Owner with Benjamin Realty LLC

On May 1, 2009 the rules for home appraisals changed and are now handled through a third party. Home Valuation Code of Conduct (HVCC) was implemented by Fannie Mae and Freddie Mac. The Code is based on an agreement between the Enterprises (FNMA and FHLMC), the New York State Attorney General Andrew Cuomo and FHFA to improve the reliability of home appraisals.The revised Code builds on already existing Fannie Mae and Freddie Mac seller-servicer guidelines to increase the reliability of appraisals for loans sold to the Enterprises for their portfolios or for securitization. The Code applies to lenders that sell single-family mortgage loans to the Enterprises beginning May 1, 2009.

For more information about the changes as to how home appraisals are now done visit our blog post on Benjamin.com.

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This post is copyright of Bob and Carolin Benjamin, Benjamin Realty LLC, Gold Canyon and East Phoenix Arizona Valley Realtors. 480-201-3001. 

Comments (14)

Charlie Harden
Columbia, SC

Bob & Carolin, right you are.  One company I know of had it in place before May 1, 2009.  Thanks for posting.

May 26, 2009 12:16 AM
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Carolin,

I don't much like the new system.  Appraisers get paid less, loan officers pay more.  What used to cost me $300. is now $395. and the appraiser gets less than half of that.

Mike in Tucson

May 26, 2009 06:34 AM
Todd Clark
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

I would like to say this is a good things for buyers and sellers, but I've been noticing appriasals taken much longer than normal and you have no way to find out how they came to their conclusions. (I actually had to write a letter on behalf of my buyer to bring the appraisal up. Yes for the buyer)

Todd Clark - www.LivingBeaverton.com

May 28, 2009 05:11 AM
Kim Dean
www.GoSimplyTexas.com - McKinney, TX
Simply Texas Real Estate - Broker/Owner

I think that this is the way it should have been all along. Thanks for posting this info for everyone to see - VERY important change to know about!

May 28, 2009 07:32 AM
Lisa Wetzel
RE/MAX Realty Affiliates - Carson City, NV
CDPE, SFR carsonvalleyland.com

I agree we need so separation ...it was a bit too snuggley ... but it also needs to be done with common sense.  sending appraisers that have no knowledge of the market and the area is not reasonable!

May 28, 2009 03:32 PM
Jim Valentine
RE/MAX Realty Affiliates - Gardnerville, NV

It is causing delays already.  We have an escrow we were trying to close early as the buyer is leaving on a month long trip to Europe and wanted to be moved before she left.  Appraisal came in yesterday- we're trying to close today.  Slim chance.  Another example of our entire industry being impacted by a few crooked practitioners.

May 28, 2009 11:25 PM
Mary Douglas
United Country Ponderosa Realty, Red Feather Lakes, Colorado - Red Feather Lakes, CO
REALTOR, Red Feather Lakes, Colorado

Thanks for the link -- I did some research yesterday -- the jumping point was an article in our local newspaper that said it started June 1, and the appraisal had to be in the buyers hands 10 days prior to close...then on AR, I read May 1, and 3 days prior to close.... always good to get all the info correct from the start! I will go to your link now.

May 30, 2009 04:46 AM
Sharon Simms
Coastal Properties Group International - Christie's International - Saint Petersburg, FL
St. Petersburg FL - CRS CIPS CLHMS RSPS

While this has a good purpose, it's also created not only delays and higher fees, but it often results in a newer appraiser (who will accept a lower price) doing a quick appraisal that an experienced appraiser familiar with an area would spend more time on and come up with a more accurate appraisal.

May 31, 2009 05:15 AM
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

I'm split on the new system, especially the part about appraisers being rotated. As I understand it, someone who specializes in downtown San Diego because he lives down there could be asked to go out to Rancho Santa Fe, a totally different market. Ultimately this could be good because appraisers should know how to appraise any type of property anywhere, but initially I think it is causing some problems. That and the higher appraisal fees that we are being quoted.

Jun 09, 2009 08:31 AM
Russel Ray, San Diego Business & Marketing Consultant & Photographer
Russel Ray - San Diego State University, CA

I haven't heard a positive word about the new system from any of the appraisers I know.

Jun 10, 2009 04:30 PM
Not a real person
San Diego, CA

Hey, Bob and Carolin - I see this is your most recent post. Hope all is well with you and yours, that you're really busy, but that you'll be back soon to Play in the Rain with us.

Jun 15, 2009 09:31 PM
Marchel Peterson
Results Realty - Spring, TX
Spring TX Real Estate E-Pro

Bob and Carolin, The jury is still out on this one.  I think that pendulum sometimes swings a bit far.

Jun 26, 2009 03:32 PM
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Carolin,

Since I commented back in May, I have come to like the process even less than I did then.  There's legislation with bipartisan support before congress to repeal this.

Mike in Tucson

Jul 01, 2009 12:33 AM
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

As with too many new rules, there is a lot of initial confusion.  Our Association of Realtors held an informative seminar just recently and invited an appraiser as well to shed light on some of this.  What I got from it is that as a Realtor, I can only hope the appraisal is being done by a person knowledgeable of the area and market.  Have a great 4th!

Jul 04, 2009 04:31 AM