FHA Appraisal Standards, HVCC Next
Appraisers of FHA-insured loans are bracing for their own version of the controversial Home Valuation Code of Conduct, which governs appraisals for Fannie Mae and Freddie Mac loans. The Department of Housing and Urban Development reminded FHA appraisers of its standards and the sanctions that the department can impose when appraisers don’t comply with HUD regulations.
House Financial Services Committee Passes Rep. Miller’s Amendment to Sunset the Home Valuation Code of
Washington, DC – October 22, 2009 – (RealEstateRama) — During the House Financial Services Committee mark-up of H.R. 3126, the Consumer Financial Protection Agency Act, the Committee approved an amendment offered by Rep. Gary Miller (R-CA) to sunset the Home Valuation Code of Conduct (HVCC).
“While I am supportive of ensuring accurate appraisals, I have repeatedly expressed concern that the HVCC has potential to increase costs to consumers, significantly hinder a consumer’s ability to obtain legitimate and reliable appraisals, and adversely impact small business professionals who work in the very neighborhoods where these consumers are looking to purchase homes,” said Congressman Miller. “In fact, since the implementation of the HVCC on May 1, there are numerous examples of higher costs for appraisals, poor service, the inability to use one appraisal for more than one lender, questionable quality of appraisals, and the inability to make corrections to inaccurate information on an appraisal report.”
“I have serious concerns with the way in which the HVCC was promulgated, and this amendment would ensure that these standards, which are currently affecting well over 70 percent of the market, go through the rulemaking process to avoid the unintended consequences to consumers that this proposal is producing,” added Congressman Miller. “During these times of economic hardship, we should not impose regulations that increase costs to consumers and have the potential of creating a continuation of the declining housing market.”