Are There Problems With HVCC?

At the NAR these past few days, there was a seminar bearing the title, “Managing the Risks and Opportunities of the New Home Valuation Code of Conduct (HVCC).”

A panel was seated for this seminar that included folks from FHFA, FHA, Fannie Mae, Freddie Mac and AMC. Two Realtors sat on the panel to provide the other side of the story.

The panel consisted of:

· Alfred Pollard, General Counsel
Federal Housing Finance Agency

· Mark Johnson
COOLSI an Appraisal Management Company

· Jacqueline Doty, Director
Collateral Policy for Freddy Mac

These panelists began with short comments on the purpose of HVCC and their perception of how it was working out. The main purpose of HVCC was to combat fraud.Mr. Pollard stated – “We have experienced a systemic event for the financial markets, primary and secondary lenders, Realtors, institutional lenders and appraisers – all of those industries are on the table as we determine what comes next.”

Realtors were represented on the panel by:

· Steve White
Los Angeles Real Estate Office Owner

· Penny Triplet
Ohio Realtor and appraiser


White and Triplet presented a litany of complaints that many Realtors and real estate professionals are familiar with. Bad appraisers, out of area appraisers, delays, incompetence, failed transactions, lack of portability and higher costs to customers – were all covered by them.The panelists representing the more government stance often quoted certain passages from the 6 page HVCC document, stating how HVCC is supposed to operate, and attempted to present guidelines for working through various aspects of it.HVCC is set to expire November 2010.

The Q & A portion of this seminar allowed an opportunity for Realtors to present questions. A long line stood quietly waiting for their turn at the microphones.

The seminar offered no clear answers to the problems Realtors are experiencing with HVCC. Advice to Realtors consisted of reporting bad appraisers. Realtors ARE ALLOWED to talk to appraisers and provide comps. You can request a do-over on an appraisal. Buyers who switch to another lender, should find the appraisal is portable, as long as the new lender will accept it.

So are there Problems with HVCC? – It likely depends on WHOM you ask!

Written for GreatWest GMAC
by: Myrl Jeffcoat