Home Valuation Code of Conduct (HVCC)
May 1st, 2009
Beginning today, all conventional loans sold to Fannie Mae and Freddie Mac will have to comply with the new Home Valuation Code of Conduct (HVCC). The code was enacted for the purpose of dissuading undue influence with real estate appraisers by homeowners, mortgage brokers, and their subsidiaries.
Here are some of the Frequently Asked Questions surrounding the new HVCC and the impact it has on your home purchase or refinance. If your questions remain unanswered after reading through this list, your mortgage consultant will be happy to address them.
Q- Can I still order my own appraisal?
Answer: Unfortunately, you as homeowner, and we as mortgage consultants can no longer select the appraiser that performs your home appraisal. All appraisals ordered after 5.01.09 must be ordered through a lender approved Appraisal Management Company
Q- How can I pay for my appraisal? Can I still pay with a personal check or cash?
Answer: You cannot pay with check or cash at the time of your appraisal any longer. Payments can now be made either online or over the telephone directly to the appraisal management company, or we will make the payment to them on your behalf with the Credit Card Authorization Form included in your initial application paperwork.
Q- Do appraisals still cost the same $350.00 that I’ve paid in the past?
Answer: While each appraisal management company charges different costs, the average cost of our appraisal has increased slightly. Your mortgage consultant will be able to give you the exact cost with your chosen lender.
Q- Can I still include the appraisal cost into my closing costs?
Answer: No. In the past, Guardian Financial has paid for the cost of your appraisal, and been reimbursed at closing. As of May 1st, Guardian Financial can no longer contribute anything towards the cost of your appraisal at any point during your financing
Q- What can I do to put an end to this?
Answer: You can contact your congressman or woman and let them know that the HVCC is having a negative impact on consumers and homeowners. Follow the link below to find contact information for your representatives contact information, as well as the Federal Housing Finance Agency, Fannie Mae, and Freddie Mac.
More Information:
National Association of Mortgage Brokers -- HVCC Call To Action
Request for HVCC Reconsideration -- Petition
ARTICLE FROM CNBC:
New Rules on Home Appraisals End Up Thwarting Many Sales
|