Home Valuation Code of Conduct

Gone are the mortgages and lending practices of the past. With the fall many financial giants, the industry has dramatically changed over past year. Financial institutions have been forced by regulation to scrutinize their review process. The real estate appraisal sector has also been revamped. The Home Valuation Code of Conduct (HVCC) has been established to standardize the business for solicitation, selection, compensation, conflicts of interest and appraiser independence. HVCC was implemented as of May 1, 2009, for any mortgage that is sold to Fannie Mae or Freddie Mac; Federal Housing Administration (FHA) and Federal Home Loan Bank (FHLB) mortgages are not covered in the agreement. See more details. It’s not the end all, but certainly the constraints will deter unbridled real estate appreciation over the next several years.