The impact of the HVCC on the real estate appraisal industry.
The HVCC went into effect on May 1st, 2009.
To help enhance the integrity of the home appraisal process in the mortgage finance industry, in March 2008, Fannie Mae entered into an agreement with our regulator—the Federal Housing Finance Agency (then the Office of Federal Housing Enterprise Oversight)—and the New York Attorney General’s office to adopt certain policies relating to appraisals for loans delivered to us. Following a public comment period, the Home Valuation Code of Conduct was modified and became effective for single-family mortgage loans (except government-insured loans) that are originated on or after May 1, 2009, and delivered to Fannie Mae.
The HVCC does not require a bank or lender to use an Appraisal Management Company (AMC).
Question 42 of the FAQ: Is a lender required to use an AMC for ordering appraisals?
A: No. A lender may order appraisals directly from an individual appraiser.
While a bank or lender does not have to use and AMC to order a real estate appraisal, almost all of my clients do. As a result, my appraisal fees have been reduced between 28% and 40%. Me fees have been reduced while in a lot of cases the cost of a real estate appraisal has increased for the consumer. The HVCC has had a huge negative impact on my real estate appraisal business.
You can find a copy of the HVCC on eFannieMae.com along with a list of Frequently Asked Questions on Fannie Mae’s website.
Posted by Bryan McDonald (Follow him on Twitter)
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Hi Bryan,
Great Site and Great Content!!! You’re one of the few appraisers that’s catching on in 2009! Thank you for the update. If your fees are down that low, it’s time to spend some time shopping for other lenders and better paying AMCs…..they are out there. I’ll help promote you on real estate appraiser tips dot info. Would encourage you to join Appraisers Water Cooler if you haven’t already……there’s some sharp appraisers on there helping us to figure our way through this new maze called HVCC. Take Care! Bill on Twitter @billsuccess and @appraisertips
Thank you for the complement. I have been meaning to check out the appraiser’s water cooler. Thanks!
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