September 15th, 2010 6:52 AM

Out With The Old  ....

The Federal Housing Finance Agency (FHFA) implemented HVCC in May 2009 in an attempt to improve the independence of appraisers by prohibiting lenders and third parties from influencing appraisals.  HVCC was a controversial regulation, leading to an increase in demand for appraisal management companies (AMCs) and complaints from independent appraisers who claim they’re being cut out of the market.  

HVCC was intended to curb mortgage fraud and inflated valuations by putting appraisers arms-length from any outside influence. Sharing important information with an appraiser about a home, such as, other comparative values in the area or special features of a property that are unique, were completely forbidden.  

Homeowners of short sales complained that, in the valuation backlash of HVCC, that their homes values were unduly lowered in value.  HVCC  has also been unpopular with agents and homeowners since the appraisers were chosen from a blind pool.  Some agents reported that appraisers were "chosen from outside of the area" and were not familiar with valuations in the areas they were chosen to appraise.

In With The New ....

Before Congress passed the bill, a congressional conference took place to reconcile versions from the House and Senate.  Lawmakers put a new set of  “appraisal independence standards” into the bill to replace the HVCC.

Type the characters you see in this picture, click "Submit" when finished.

		This helps us prevent automated programs from creating bogus contacts and adding them to your contacts database.