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Living with the HVCC


The implementation of the Home Valuation Code of Conduct (HVCC) impacts a number of stakeholders in the real estate industry. And as with the implementation of any new program or policy, there is a lot of confusion about what this means to real estate agents and appraisers.

The rumors were rampant. People were concerned that the business relationships that they had spent years building were going away. Appraisal Management Companies (AMCs) were though to be making assignments to appraisers without consideration of their geographic competency. And most important, REALTORS thought that it would be more difficult than ever to contact an appraiser, even to ask them to consider additional data or correct errors in the appraisal report.

To help REALTORS understand the impact, a Regulatory Issues Brief was put together for the 2009 Midyear meetings in Washington D.C. , but many of the REALTORS in the trenches, don’t read those documents, and so the confusion continues. But NAR wasn’t done trying to help us understand the impact of the HVCC.  A page was created on to allow members to view the most up to date information on the HVCC.

But just in case you’re not feeling like checking out, I thought a few of the myths and facts from the site might be useful to you

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Myth: The code applies to all mortgages that require an appraisal

Truth: The code only applies to 1-4 family loans sold by Fannie Mae or  Freddie Mac and does not apply to FHA, VA or the Federal Home Loan Banks.

Myth: HVCC Prohibits REALTORS and lenders from talking to appraisers

Truth: REALTORS and lenders can talk to appraisers, including making requests to consider data or correct errors

Myth: Lenders are required to choose appraisers from a rotating rostr approved by Fannie Mae or Freddie Mac

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Truth: Lenders may choose to use a rotating roster, but are not required to do so by Fannie Mae or Freddie Mac

Myth: Borrowers must use a credit card upfront to pay for an appraisal

Truth: A borrower is not required to pay for an appraisal with any one particular form of payment.

So in their final analysis, the relationship between REALTORS and appraisers should not be impacted in a negative manner, though we do need to respect the new code, and learn to deal with it.

You do have more options though, including a place to request a reversal of the HVCC – but unless, and until that happens, we need to learn the facts so that we can live with the legislation.

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Photo Courtesy of Creative Commons

Written By

Bill is an unusual blend of Old & New - The CEO Century 21 Advantage Gold (Philadelphia's Largest Century 21 company and BuzzBuilderz (a Social Media Marketing Company), He is a Ninja CEO, blending the Web 1 and 2.0 world together in a fashion that stretches the fabric of the universe. You can follow him on twitter @Billlublin or Facebook or LinkedIn.



  1. Kris Berg

    July 8, 2009 at 11:10 am

    >So in their final analysis, the relationship between REALTORS and appraisers should not be impacted in a negative manner…

    True, and I should not be allowed to continue to attempt to make an edible Beer Brisket, but the problem persists. There is the recipe and then there is the execution.

    This is timely since we missed another appraisal today and were told to pound sand.

  2. Bill Lublin

    July 8, 2009 at 12:05 pm

    I have the same issues and am dealing with an appraisal problem on my Mother-In_Law’s home – impacted by the lender’s misunderstanding of the HVCC – but if we know how it works we can hopefully function a little better.

    Now about that edible Beer Brisket….

  3. Rod Rebello

    July 8, 2009 at 3:47 pm

    I also suffered from the an appraiser’s misunderstanding. He would not even acknowledge he was assigned to do the appraisal! And I got his contact number from the lender. I sent him a copy of the myths/facts, but he probably won’t open my email :).

  4. Arlington condos Jay

    July 8, 2009 at 9:17 pm

    You should read the very frank input by appraisers impacted by HVCC on my blog post Buyers Get Slapped Around by HVCC Rules and AMCs:

    As my post ranks #1/2 for “HVCC rules” it has gotten the attention of lots of business owners and appraisers. check it out. The post focuses more in the impact to consumers rather than specific rules….

  5. San Diego Homes

    July 10, 2009 at 3:05 am

    I’m sorry, but this post is it’s own myth. The HVCC rules have changed the appraisal landscape. There are poor appraisers being called to do low-cost appraisals in neighborhoods that they know nothing about. There seems to be serious pressure to undervalue properties, or else the appraisers themselves are just scared that they will somehow overvalue the homes.
    But thanks for your post. I’ll be glad to read more of the ongoing discussion.

  6. Denver Foreclosure Listings

    July 11, 2009 at 2:18 pm

    I agree that there is a lot of misinformation about the HVCC guidelines, but 60 days in, things seem to be getting better.

    There shold definitely be a cap on the fees paid to the Appraisal Management Companies. A 50/50 split between the AMC and appraiser is just not fair. A $25 – $50 fee per appraisal shoud be the VERY top of the limit. The current setup is basically government-mandated extortion.

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