New Information on HVCC Announced by FHFA, GSEs

Yesterday the Federal Housing Finance Agency (FHFA) issued the noticeStrengthening Appraiser Independence and Improving the Valuation Process” aimed at addressing misinformation being circulated on the Home Valuation Code of Conduct (HVCC). The notice states that, amongst other things, the HVCC provides for communication with appraisers about errors, additional needed information and unprofessional conduct. It also states that the use of “unqualified in-state or out-of-state appraisers, unfamiliar with local conditions, should be reported to state appraiser licensing agencies.”

At the same time, both Fannie Mae and Freddie Mac updated their Frequently Asked Questions on HVCC. Freddie Mac added more than a dozen questions to its FAQ while Fannie Mae added nine questions to their FAQ and provided updates on existing questions.

  1. Anonymous

    Why is it that FHFA, FNMA, & Freddie Mac, & even Realtors still don’t get it?
    Appraisers are not traveling 100+ miles because they love to drive. They’re accepting these jobs because they were forced to surrender their clients. They’re traveling because they were forced to hand over 1/2 of their incomes to AMCs (banks).
    They also can’t comprehend that borrowers are being lied to on the HUD-1 about appraisal fees regularly.
    They also can’t comprehend that bidding out the appraisal order to the cheapest appraiser virtually guarantees a poor quality report.
    They also can’t comprehend that 24 hour turnaround equates to a poor product.
    They also can’t comprehend that HVCC was poorly thought out (if thought out at all).
    They can issue all the new “guidance” they want to. The bottom line is that HVCC was a poorly conceived idea forced upon them by a cunning politician (idiot) named Cuomo for political and monetary gain.

  2. Tim

    I agree with all of the above EXCEPT the HVCC was poorly thought out. I believe these bandits have planned for this economic scenario and outcome for years. Actually, it quite brilliant and must have been discussed and planned at the highest levels. After the S & L crisis when quality control was mandantory (well still is supposedly), lets say enforced, this was seen as an undue burden to the bottom line. Until a way was figured to get qulaity control to pay for itself. That worked out so well that in turned into a nice extra profit model. Expand that to take Oh, maybe a 60 or 70 % market share of the valuation services industry and the dough comes rolling in !
    Not well thought out….Nah, I don’t believe that for a minute. HVCC is here to stay as much as appraisers State Certification was back in 1989. That waas actually the birth of what we are dealing with now.

  3. Bill Abalos

    They just don’t get it. A dog gets better scraps off the table than us appraisers do. Thank you HVCC! Now I buy dogfood for myself so we have something to eat at home. Only problem is, the food keeps falling through the grill.I can’t cook it in a frying pan since my gas was shut off due to lack of payment. Any ideas to fix that?

  4. andy

    This all worked a lot better before government stepped in to improve things.

  5. mister d

    The only line in the original HVCC that gave it a speck of credibilty was that no bank could own any part of an AMC. Of course this is one of the only sections taken out prior to implication.
    Even worse is the fact that the supposed cause was the WAMU eappraiseit case. Effectively Mr. Cuomo steered a majority of the appraisal business to the defendant in the case. This is equivalent to making a pedophile serve community service at a daycare.
    Does anyone know what Mr. Cuomo was doing prior to becoming AG. He was on the board of an AMC (AIMCO) now known as Valuation Services.
    No wonder Linda Nessi left the appraisal subcomitee after just one day. She obviuosly saw how captured and controlled by the banks the industry is.

  6. Tim Gilbert

    Like many appraisers who thought that building a business meant creating relationships and trust in your ability, my 30+yr practice was scrapped 5/1/2009. Over the years I learned that busy people were busy for a reason & that rushed service often results in poor production. Also, you get what you pay for. Bottom feeding AMC’s seek the lowest fee, ignoring experience and knowledge of local markets which doesn’t travel well from 10 counties or states away. I’m finding that many low fee appraisal assignments are being refused by experienced local appraisers. Many of those jobs are now being done by out of area appraisers who have limited or no local knowledge or information.

  7. Scott A Nelson St.Cert.Res.Rea 0001578

    I have been a full time Real Estate Appriser since 1985. Since HVCC I have been with so little work I will soon have to QUIT. I am (was) an honest Appraiser. I refuse to rush an appraisal (8hr turn time for a fee of less than half of my fee from these Appraisl Services) Before I quit I would love to review some of these rushed substandard appraisals