HOME VALUATION CODE OF CONDUCT (HVCC)

In December 2008 the Federal Housing Finance Agency approved the Home Valuation Code of Conduct (Code) to be implemented May 1, 2009. The code modifies Fannie Mae and Freddie Mac seller-servicer guidelines to improve the reliability of home appraisals and to restore appraiser independence. The aim of the code is to assure that all parties involved in the mortgage market will receive fair and independent property valuations. Among other changes, the code sets in place new

rules and regulations governing

The process for ordering appraisals

Appraiser independence
Improper influences on appraisers
May 1st was the start of HVCC. This is Fannie Mae and Freddie Mac so called solutions to appraisers over estimating home values. Before May 1st Mortgage companies could directly order an appraisal from an appraiser. HVCC requires mortgage companies to order appraisals through and appraisal management company. It is thought that this will stop contact between loan officer/mortgage companies and appraiser. HVCC wants to stop loan officer/mortgage companies from influencing appraiser to bring in homes at certain inflated values.

What does this mean to borrowers. The cost of appraisals will go up. I am seeing a $25.00 increase. Turn around times will be longer and in many causes the quality of the appraisals will go down. The reason for this is most mortgage companies will use a national appraisal management company. National appraisal companies charge up to $400 for an appraisal and only pay the appraiser about $200 for an appraisal. Most of the best appraisers who have experience will not work for $200 for an appraisal. This leave allot of the work to be done by appraisers who are less experienced and will be forced to turn out appraisal like a factory.

Nova Home Loans works with Accurate Appraisal Management a Tucson based company who pays their appraisers more than a national management company, guaranties a 5 day turn around time and charges the borrower only $375 for most report. Accurate appraiser list is loaded with top quality appraisers who know the local ares and are proven appraisers. This insures Nova Home Loan borrowers receive the best quality appraisals available. This is another advantage of borrowers working with Nova Home Loans.