Fannie Mae Releases Appraiser Independence Requirements

Dennis Norman

Now that the controversial (to put it mildly) Home Valuation Code of Conduct (HVCC) has been put to rest as part of The Dodd-Frank Wall Street Reform, Fannie Mae has released their “Appraiser Independence Requirements“.  Fannie Mae says the purpose of these requirements is to:

H.R. 4173; The Dodd-Frank Wall Street Reform and what it means to appraisers

Frank Gregoire

Frank Gregoire

My world was much different in the late 1980’s. Although I was in the real estate business and the real estate appraisal profession for a decade, political activity did not interest me. Here at Gregoire & Gregoire, we had already been using a networked mini-computer for appraisal reporting since 1983, but I did not have an email account or address. I did not surf the web. Our clients were savings and loan associations, FHA lenders, loan discount companies (purchasers of privately originated first and second mortgages), real estate brokers, and several lawyers. All our research was completed through examination of paper and microfiche records. We went through Polaroid SX-70 film packs by the case and always kept a spare camera or two in the back seat or trunk of the car. Life was good. The appraisal profession, at least here in the Sunshine State, was one coveted by many. Continue reading “H.R. 4173; The Dodd-Frank Wall Street Reform and what it means to appraisers

HVCC, AMC’s and the Appraisal Industry; a view from the inside

Editor’s note – Last month we published an article about HVCC which drew quite a few comments and responses….one such response was from veteran appraiser Paul Collins in which he shares his frustration with the state of the industry and the impact of lenders and legislation on his industry. Our thanks to Paul for allowing us to publish his thoughts..

The good ole days of direct communication and the new day we are “living” both have the same problem. Appraisers are not a valued part of the process because there are no consequences for bad lending decisions. The last time a bank valued a competent appraiser was when the local bank kept the paper and was responsible for collecting and foreclosing if that loan went bad. A real and legitimate understanding of the actual value of a property played a part in a thoughtful consideration of the overall loan application. (It even included the capacity and willingness of the borrower to repay the loan! What a concept!) Continue reading “HVCC, AMC’s and the Appraisal Industry; a view from the inside

Financial Reform Bill Kills HVCC; Helps Appraisers

Dennis Norman

07/17/10-Correction – This past week Congress passed H.R. 4173, the Wall Street Reform and Consumer Protection Act which is the most comprehensive reform to the banking industry since the Great Depression.  The bill now awaits President Obamas signature which is expected to happen in the coming week.

This is a very comprehensive bill and I’m not sure even the Congressmen that passed it know everything that is in it, so I’m certainly not going to even pretend to know that much about the bill, but the one thing I do know is the Home Valuation Code of Conduct (HVCC) is dead. It’s been a while since I have written about HVCC but to refresh everyone’s memory HVCC is something has wreaked havoc with home buyers, REALTORS and appraisers. HVCC, which went into effect on May 1, 2009, has caused issues and confusion in the real estate industry and among professionals in the industry.

Killing HVCC will be, in my opinion, be a positive thing for the real estate market.

Bill in congress to stop HVCC gains momentum

Dennis Norman

Dennis Norman

By: Dennis Norman 

Since going into effect May1st the new Home Valuation Code of Conduct (HVCC) has caused controversy, been blamed for killing sales and seems it has everyone up in arms.

In late June I did a post on another blog about a bill,  H.R. 3044, that was introduced in the U.S. House of Representatives that, if passed, would put an 18 month moratorium on HVCC.

The bill was introduced by Representatives Travis Childers and Gary Miller.   Since being introduced the bill is gaining some support and momentum.  As of today there are 22 cosponsors that have signed on to the bill.  So far none of the representatives from St. Louis (or Missouri for that matter) have signed on yet but hopefully their support is forthcoming.

To see the representatives that have signed on as co-sponsors please click here.