The Home Valuation Code of Conduct,like most rules or codes, started with the best intentions. It identified that sometimes 3rd parties had too much influence on appraisals that affected the value and the lendor-investor's security, and by extention the wealth and stability of the nation and the world. The Code set out to fix these transgression and create an arms length environment in the selection of appraisers performance of appraisals.
Well, like with many rules and codes, the cure is sometimes worse than the illness. Now appraisals are just plain taking too long and seem to be slowing the recovery in housing that the world needs to prime the engine of recovery. NAR has identied that this is a problem and is working in Washington to rectify the situation.
Here's and excerpt of an email sent to NAR members by Charles McMillan 2009 NAR President:
"During the past two months, we have heard from many of you regarding problems with appraisals that are causing deals to be delayed or canceled altogether. I assure you that we on the NAR Leadership Team are experiencing the same problems in our businesses. In fact, VP & Liaison to Committees Steve Brown recently shared his experiences in Ohio on the Voices of Real Estate blog.
http://narblog1.realtors.org/mvtype/president/2009/06/all_is_not_quiet_on_the_midwes.html
Let me update you on what NAR is doing to resolve these problems quickly.
On Monday, June 29th, I will be in New York to meet with the Deputy Attorney General and his staff who worked directly on the Home Valuation Code of Conduct. I plan to share our concerns, as well as your stories, and ask for their assistance in resolving any problems related to the HVCC.
On Tuesday, June 30th, I will travel to Washington, D.C., to meet with the Director of the Federal Housing Finance Agency to discuss ways we can work with Fannie Mae, Freddie Mac and lenders to ensure that appraisals are accurate."
Let's all keep our fingers crossed and hope Charles enjoys some success with these intitiatives. We as agents are on the frontlines of this dilemma and see the impact the Code has wrought firsthand. I applaud the government for trying to rectify the problem of shoddy appraisals but if the solution is too severe then the goverment should take a fresh look at the ultimate aim and consider whether or not there's a better way to go about it.
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