Update on the HVCC!!!!!!

By
Real Estate Appraiser with Real Estate Valuation Group

This is the latest from the Appraisal Pess.  It feels good to think that our issues with the HVCC are being discussed at the highest of levels.

Dole grills Bernanke about HVCC during hearing

 

As you probably know, since early March we've been working with our lobbyists and legal team in Washington, D.C., to make critical changes to the proposed Home Valuation Code of Conduct (HVCC). Despite its good intentions, the HVCC, as drafted, has unintended consequences for the appraisal and mortgage industries already acknowledged by OFHEO. Thanks to your efforts, we have had some success in getting our voice heard in Congress.

Yesterday in Washington, Federal Reserve Chairman, Ben Bernanke testified before the Senate Committee on Banking about the overall health of the economy and the difficulties facing Fannie Mae and Freddie Mac. Senator Elizabeth Dole (R-NC) asked Chairman Bernanke specifically what the Fed is doing to ensure the HVCC does not further disrupt the housing and mortgage crises in this statement:

"...While everyone appreciates the goals of this agreement, the code leans heavily towards inconsistent and potentially counter-productive regulation of the lending industry. If implemented poorly, [it] could actually increase costs of obtaining appraisals and slow down the process of obtaining appraisals. Recognizing that the current settlement recommendations are inconsistent with current appraisal regulations and guidelines issued by the FFIEC sub-committee on appraisals. What are you doing to ensure the implementation of the code of conduct does not further disrupt the current housing and mortgage crisis on federally regulated banking institutions? What can you do?"

Fed Chairman Bernanke responded by saying that they are looking at the HVCC to ensure that it doesn't prevent banks from getting the information they need to make good appraisals or imposing excessive costs. He also commented that they will be examining the HVCC before it's implemented. (Click here to watch the video.)

Another important reason yesterday's events are newsworthy is the sweeping housing and mortgage finance package moving through Congress. According to Congressional Quarterly, the pending legislation would create a strong new regulator for Fannie Mae and Freddie Mac, with the authority to set capital standards and limits on the companies' portfolios.

While there's still work to be done, it is important you know that your voice has been heard in a very important way. In fact, since you became involved, almost every federal regulator, including the Fed, has written OFHEO to express their concerns about the HVCC. And, through your comments to Senator Dole as well as other Senators, and yesterday through Senator Dole to Fed Chairman Bernanke, it's clear that the HVCC has the attention of regulators at the highest levels, and they have concerns similar to ours.

At the very least the HVCC was brought to the Fed's attention in a public forum. Your efforts were not in vain.

We'll let you know how this all plays out as we receive word from our sources. So, stay tuned.

Comments (4)

Sharon Roark
United Real Estate Lexington - Lexington, KY
Realtor Extraordinaire in Lexington KY

Thanks for the update -- I love Sen. Dole!

Jul 16, 2008 10:00 AM
Anonymous
Ted Lingley

Well, it appears that our concerns were received, but fell on deaf ears.  The HVCC will go into effect on 5/1/09.  As far as appraisers are concerned, no changes were made to the original agreement and our worst fears have come true.  We will no longer have any relationship with our existing clients and will rely completely on AMC's to provide us conventional mortgage work.  This is the "death nail" to our businesses.  The only good news (as I see it) is that in time, this policy will fail the mortgage industry and will have to be amended or retracted altogether.  Those of us that can weather the storm with other work will eventually see the light at the end of the tunnel.  However, the appraisal "profession" has been dealt yet another severe blow and I think we are going to lose a tremendous number of experienced, quality appraisers as a result.   

Dec 29, 2008 03:16 AM
#2
Anonymous
john H

There is some new software that really helped me navigate the HVCC regulations and ensure compliance.

If you ask me, these regulations are needed.

http://www.aimsdashboard.com/

 

May 07, 2009 05:15 AM
#3
Anonymous
Adam Wise

I got out while the getting was good in 2008... Good luck to the rest of you guys, you are much more brave than I!!!

Jan 05, 2011 12:56 PM
#4