appraisals

House Committee Weighs Scrapping HVCC

The appraisal system imposed by Fannie Mae and Freddie Mac last May is under attack by the House Financial Services Committee and could be on its way out.

The “Home Valuation Code of Conduct” could be terminated by the proposed Consumer Financial Protection Agency under a bipartisan amendment approved by the House committee.

The amendment would require the new agency’s director to replace the code with a set of rules developed through regular administrative procedures and public comment periods used by all federal agencies. The valuation code was the product of a settlement among New York Attorney General Andrew Cuomo, Fannie Mae and Freddie Mac, and the Federal Housing Finance Agency.

Critics say the code created more problems than it solved and has encouraged lenders to use inexperienced appraisers who don’t know the areas where they are doing the work, which is resulting in lowball valuations as well as higher fees.

The legislation under which this code would be scrapped is likely to pass the full House, but may have a tough road in the Senate.

Source: The Washington Post Writers Group, Kenneth Harney (10/30/2009)

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Elliott Robinson, JD – Associate Broker
Keller Williams Realty Metro Atlanta
315 West Ponce de Leon Ave., Ste. 100
Decatur, GA 30030
(404) 431-2117
Web: www.elliottyouragent.com
Blog – www.elliottonrealestate.com
Twitter – http://twitter.com/elliottrob

appraisals

Mortgage Brokers Try to Change Appraisal Rules

The National Association of Mortgage Brokers spent nearly $1.1 million in the second quarter to persuade legislators that the new rules for home appraisals discourage sales and push down prices.

The new rules, which took effect May 1, prevent mortgage brokers from ordering appraisals. Only a mortgage lender can order an appraisal, and they must do it in a hands-off way.

The association lobbied Congress, the Federal Reserve, the Federal Trade Commission, and the Department of Housing and Urban Development, according to a filing with the House clerk’s office. In all, the mortgage brokers have spent $1.5 million lobbying in 2009.

Source: The Associated Press

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Elliott Robinson, JD – Associate Broker
Adams Realtors
458 Cherokee Ave. SE
Atlanta, GA 30312
(o) 404-688-1222 ext. 26
Blog: elliottonrealestate.com
Twitter: elliottrob@twitter.com