Why new appraisal rules are hurting the housing market
Posted by Jolenta Averill on
There have been increased problems related to appraisals in recent months. On May 1, Home Valuation Code of Conduct (HVCC) rules were adopted regarding mortgages that will be owned or guaranteed by Fannie Mae and Freddie Mac. Based on what we are experiencing as of late, I am concerned that the rules could delay or actually eliminate a number of potential home sales. In addition, the rule changes are costing consumers where they can least afford the extra expense.
What is HVCC? HVCC is where the federal government is requiring there be a "break" between the person working the loan and the person doing the appraisal. In theory this is a good idea because it makes it difficult for a lender and an appraiser to be working together to commit loan fraud. It…
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