THE DAILY RAMBLE: HOME VALUATION CODE OF CONDUCT - MYTHS & REALITIES
The Appraisal Institute http://www.appraisalinstitute.org has issued a new “Myths & Realities” document that does a superb job of clarifying the HVCC and debunking many myths about it. A few of the most interesting ‘myths:”
- Lenders do NOThave to use Appraisal Management Companies (AMC’s) and may hire appraisers directly.
- Correspondent Lenders CAN hire their own appraisers, as they have money in the deal.
- Loan Production Staff CAN communicate with appraisers, but may not influence them.
- Appraisers do NOT have to certify that the appraisal is in compliance with HVCC, but only with USPAP (Uniform Standards of Professional Appraisal Practice).
- Geographic Competency IS REQUIRED.
- Real Estate Brokers CAN COMMUNICATE with appraisers and supply them with comparable sales.
- HVCC does NOT apply to commercial loans.
Read the entire document by CLICKING HERE
This all sounds pretty good doesn’t it! If the reality were as true things would be much better. Unfortunately there is still so much ignorance out in the market today that the reality is much worse. Kudos to the Appraisal Institute for continuing to hammer away at this ill conceived program.
Love the breakdown of facts to Myths… Now if only the Media would let the public know that just about 10 months ago …97.2% of homeowners with a mortgage were not in foreclosure and 93% we current on thier payments… not to mention that if they want to compare this to any depression… over 1000 banks closed in the 1930’s and only 14 major banks closed in 2008… heaven forbid the media look at the stats…
Unfortunately over 20% of the people owe more than their home is worth and 40% of forclosures were NOO…and I am sure that has increased since Nov 08…the lending community thanks you for your support.