HVCC Continues to devastate home values across the US. We fear that with higher Fannie and Freddie loan limits it will carry through to our former “jumbo” markets, leading the country even further into recession. As we’ve shared, Representatives Childers (D-MS) and Miller (R-CA) introduced legislation (H.R. 3044) requesting an 18 month moratorium on the Home Valuation Code of Conduct (HVCC). H.R. 3044 now has 22 co-sponsors and now is the time to forward our petition to every person you know and every representative in the country. Read some of the comments in the petition and you will soon understand the harmful nature of this horribly misguided code.

The industry applauds the introduction of H.R. 3044 and would like to thank Representative Childers (D-MS) and Representative Miller (R-CA) for their continued efforts and leadership on this issue but it is not enough. Tens of thousands of consumers have already been robbed of their opportunity to enjoy historically low rates by Attorney General Andrew Cuomo’s rule. HVCC needs to be permanently reversed in order to restore lower costs to the consumer and to protect the thousands of real estate transactions stalled by this horribly misguided code.

Please sign and forward the following petition and forward to everyone you know in the industry and ask them to forward to their representatives: www.hvccpetition.com

Here is what NAR put out to their membership

To:      All REALTORS®

From: Charles McMillan, 2009 NAR President

Re:     UPDATE:  FHFA and GSEs Act on HVCC Concerns

Dear Fellow REALTOR®,

I am writing to you with an important update on NAR’s efforts to address ongoing

problems with recent changes to appraisal rules.

As a direct result of my recent meetings with the New York Attorney General’s office, the Federal Housing Finance Agency, and Fannie Mae, both Freddie Mac and Fannie Mae this week issued new guidance to all lenders on the Home Valuation Code of Conduct.

The alert clarifies two very important points that we raised in our meetings with

officials.  First, it states that lenders should use appraisers who have

clear experience in the geographic area.  Second, it clarifies that appraisers are

not prohibited from talking to real estate agents.

http://www.fhfa.gov/webfiles/14611/hvcc_NOTICE_7_22_09F.pdf

In addition to this guidance, both Fannie Mae and Freddie Mac recently posted

extensive Qs and As on their respective web sites, based on information that NAR

provided when the code was first adopted in May.

https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/appcode/pdf/hvccfaqs.pdf

http://www.freddiemac.com/singlefamily/hvcc_faq.html

We have posted links to all of this information at www.Realtor.org/HVCC.

Although this is certainly a step in the right direction, more still needs to be done

to address problems with the HVCC.  NAR will continue to push for a moratorium

on the Code, and I will continue to meet with industry partners and officials to

convey our concerns.

Thanks to all REALTORS® who have shared experiences and concerns with us.

Once again, you have proven that we are the “Voice for Real Estate,” and I am

proud to serve as your 2009 President.

Sincerely,

Charles McMillan, CIPS, GRI
2009 NAR President

And where is the NAMB on this?

From my Congressman (I think I will need to talk to him about the Fed banning YSP as well)

Dear Mr. Sandfort:

    Thank you for contacting me with concerns about recent regulations that established the Home Valuation Code of Conduct (HVCC). I appreciate hearing from you. You will be happy to know that I am a cosponsor of H.R. 3044, which imposes an 18-month moratorium on the Home Valuation Code of Conduct.

    The HVCC, which went into effect May 1, 2009, was established under a settlement agreement between the New York State Attorney General and Fannie Mae and Freddie Mac.  The HVCC sought to boost the independence of home appraisers to aid the recovery of the housing market. The HVCC creates a protective firewall between bank loan officers and appraisers. While I support the objective of HVCC, I have concerns about the consequences on independent local appraisers.  Unfortunately, banks have chosen to use large, national Appraisal Management Companies (AMC) to the detriment of independent appraisers.  This is an unintended consequence and should be corrected. 

    The Mortgage Reform and Anti-Predatory Lending Act which passed in the House of Representatives this May addresses appraisal activities and requires the Comptroller General to conduct a study within six months of H.R. 1728 becoming law that would determine the effectiveness of the HVCC. This includes reviewing the quality of appraisals, the impact on consumer protection and small businesses (like independent appraisers), resulting from the HVCC. Six months is a long time to wait for any action, when independent appraisers are losing most of there business today.

    The recent housing market bust has drawn criticism to unscrupulous subprime loans that exploited buyers, as well as some reports of unfair and deceptive appraisal practices, but new regulations for the appraisal industry should not come at the expense of local independent appraisers or home buyers forced to pay higher appraisal fees to Appraisal Management Companies.  I will continue to push for the passage of H.R. 3044.

    Please let me know if you have further concerns, I appreciate hearing from you and hope you will continue to stay in touch. 

Sincerely,

Rep. Peter DeFazio
Fourth District, OREGON

Great job Curt! That was a well written and spot on analysis from your Congressman. It doesn't surprise me that he is a Republican.

Actually Bob, DeFazio is a Democrat.  I think he's one of the Blue Dogs though.

LOL! My mistake. The main sponsors of HR 3044 are Dems too so it looks like we may actually have a shot at this one. The buzz is building.