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Appraisal Legislation Being Considered: Make Your Voice Heard!

By
Real Estate Agent with ACME Real Estate

The Home Valuation Code of Conduct (HVCC) has been sunsetted and new appraisal independence standards are in the works! What excellent news for consumers, lenders and agents alike!

The Dodd-Frank Act is moving its way through Congress, so now is the time to email your Senators and Representatives and TELL THEM what you want. Here are a few things I recommend:

  • Mortgage Lenders should be able to order appraisals directly from Independent Appraisers.
  • Appraisals should be PORTABLE, so they can be transferred between lenders. What does this mean for a consumer? CHOICE. If you are denied a mortgage, or if you have shopped for a loan and found a great rate with a different lender, you should be able to take the appraisal with you!

Some important notes about why the HVCC was an ineffective law:

1. Anyone who has recently been involved in the sales transaction process knows that the HVCC resulted in appraisers charging more for their services, and, in my experience, put the burden on the agents to prove the market value, as many of the appraisers were not familiar with the neighborhoods. Further, turnaround time was poor, and sometimes the quality of the appraisals was poor. I worked on a case where the appraisal came in with NO sales value!

2. There should be some regulations which prohibit improper influence on appraisers. They should be kept as independent as possible.

3. Appraisal standards should be applied equally across lenders and markets.

4. Lenders should accept appraisals that were independently ordered, even if by a different lender, if they meet standards.

THIS MAY SEEM ADMINISTRATIVE, BUT I THINK IT IS VERY IMPORTANT! APPRAISALS ARE A KEY PART OF THE PROCESS.

Let your Senator or Congressional Representative know how important it is:

Email Senator Boxer here: https://boxer.senate.gov/en/contact/policycomments.cfm.

Email Senator Feinstein here: http://feinstein.senate.gov/public/index.cfm?FuseAction=ContactUs.EmailMe.

Find your Representative here: https://writerep.house.gov/writerep/welcome.shtml.

Posted by
Courtney Poulos, Realtor, GREEN, EcoBroker Certified | 323.919.0375 direct | DRE 01882678