HVCC – Home Value Causes Chaos

Hey Folks!

Hope everyone had a great weekend? I wanted to do a little follow up on a blog I wrote that has had plenty of attention lately:

A Lender’s Appraisal Does Not Care About Your Upgrades

While many feel that it is currently a buyer’s market I feel that it is a lender’s market. This is best demonstrated by HVCC. The official definition is:

Home Valuation Code of Conduct

HVCC establishes standards for solicitation, selection, compensation, conflicts of interest and appraiser independence. It is effective May 1, 2009 for any mortgage that will be sold to Fannie Mae or Freddie Mac, Federal Housing Administration (FHA) and Federal Home Loan Bank (FHLB) mortgages are not covered in the agreement but most banks are using HVCC for all appraisals. It’s in the banks best interest. HVCC helps the banks.

How does HVCC Affect the Appraisal Process?

Realtors and mortgage brokers are prohibited from selecting appraisers. Lenders may use “in house” staff appraisers to conduct appraisals but the loan production staff is prohibited from:

• Selecting, retaining, recommending, or influencing the selection of an appraiser
• Conducting any substantive conversation with an appraiser or appraisal management management company regarding the assignment.

How does HVCC Affect the consumer:

• The appraisal process has remained largely intact. However, consumers may find the process takes longer than and may be more costly than it has been in the past.

Today I looked up the definition of “chaos” on Wikipedia. This is what I found:

Chaos (derived from the Ancient Greek Χάος, Chaos) typically means a state lacking order or predictability. In ancient Greece, it meant the initial state of the universe, and, by extension, space, darkness, or an abyss^[1] (the antithetical concept was cosmos). In modern English, it is used in classical studies with this original meaning; in mathematics and science to refer to a very specific kind of unpredictability; and informally to mean a state of confusion. In popular culture, the word can occur with all three meanings.

So Chaos is lacking order or predictability. For this (and many other reasons) I feel that HVCC should be:

Home Value Causes Chaos

 

 

American Bank Mortgage Group is a direct lender servicing all 50-states. I’m centrally located in Indianapolis, IN and can help answer your questions and best of all we close mortgages in 10-days or less.

At your service,
Tony Grego
Senior Mortgage Banker
American Bank - Indianapolis, IN Branch

www.getmyratequote.com
www.tonygrego.com to learn more about me

317-348-0280 direct line
317-536-3754 fax

"Bankers with vision, helping people with dreams!"