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Have you read Fannie Mae’s FAQ on the Home Valuation Code of Conduct (HVCC)?

October 13, 2009 in HVCC, Industry News | 1 comment

fannie-mae-hvcc-faqSince the Home Valuation Code of Conduct (HVCC) went into effect on May 1, 2009, there has been quite a bit of confusion over who can now talk with appraisers. I won’t re-hash the entire gist here since I have posted previously about the subject, but I did want to post a link to Fannie Mae’s HVCC FAQ in case you have not seen it. This document may be helpful to home owners, loan officers, and real estate agents who are wondering about what type of communication is appropriate under HVCC (as well as other questions then answer).

Download Fannie Mae HVCC FAQ (PDF)

NOTE:  HVCC only impacts loans that are geared toward Fannie Mae or Freddie Mac. Appraisals for litigation, estate settlement, divorce, bankruptcy, and FHA, among other purposes, are NOT impacted at all by HVCC. In effect this means an appraiser like myself can regularly and ethically communicate with many clients during the normative course of the business day because HVCC only applies to certain facets of loan work.

http://www.lundquistcompany.com/blog Have you read Fannie Mae’s FAQ on the Home Valuation Code of Conduct (HVCC)?

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When Will a New Wave of Foreclosures Hit the Sacramento Region?

June 15, 2009 in Industry News | No comments

Inspections up to June 5 2009 063If you have been following real estate trends in the Greater Sacramento Region, you have probably noticed that overall there have been fewer foreclosure listings over the past few months and therefore an increased demand for bank-owned properties (resulting in multiple offers and many times offers over asking price). Banks have been holding on to some of their distressed inventory and not releasing these properties on the market. Well, it looks like a moratorium for 90 days may go into effect today per CBS 13 in Sacramento. All of us in the real estate industry have expected a wave of foreclosures to hit the market for many months now, but it looks like that won’t happen for at least another 90 days. Investors, clients and agents have been telling me that this wave would come in March, but then the buzz was June, and then July, and maybe now September. We shall see. What do you think of this?

http://www.lundquistcompany.com/blog    When Will a New Wave of Foreclosures Hit the Sacramento Region?

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A Note to FHA Buyers, Agents, & Brokers in the Greater Sacramento Region

June 9, 2009 in Industry News | No comments

Dear Local Buyers & Agents in the Greater Sacramento Region-

The Home Valuation Code of Conduct (HVCC) is a new law that went into effect on May 1, 2009. What this law aims to do is eliminate pressure from loan departments on appraisers to arrive at a certain conclusion of value. One of the biggest changes since HVCC took root is that loan departments can no longer directly communicate with the appraiser about value-related issues and so they must use an appraisal management company (middle man who takes away part of the appraiser’s fee) or work out some other arrangement to have an in-house department that handles appraisal ordering. As you can imagine, this has certainly changed business for many appraisers as well as loan officers and banks because many of our business contacts are no longer viable sources of connection for doing business. Everyone is adjusting and there are many people who are unhappy at the process.

THE GOOD NEWS though is that when FHA financing is being used, the buyer, agent or broker can readily choose whatever appraiser he/she wants because HUD is not bound by HVCC. In a market full of FHA financing, it is still possible then to work with any appraiser you want to.

NOTE: Home owners, lawyers, investors and others can hire a real estate appraiser any time they want to. If the purpose of the appraisal is not a loan geared toward Fannie Mae (eventually sold to them), then the Home Valuation Code of Conduct DOES NOT apply at all. There has been some confusion on this matter since May 1, 2009, but the truth is that HVCC only applies to loans that may eventually be sold to Fannie Mae. I do appraisals for estate settlement, divorce, property tax appeal, bankruptcy, second opinion of value, home-repair loan programs, litigation and other purposes that have nothing to do with a loan geared toward Fannie Mae. Thankfully in these cases I am able to work directly with home owners, investors, agents or local governmental agencies among others.

Please let me know if you have any questions. Thank you.

Your local appraiser,

Ryan Lundquist
Lundquist Appraisal Company
PH: 916-595-3735 
FAX: 916-361-1964
EMAIL: ryan@lundquistcompany.com
WEBSITES: www.lundquistcompany.com

http://www.lundquistcompany.com/blog  A Note to FHA Buyers, Agents, & Brokers in the Greater Sacramento Region

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Can Realtors Still Talk to Appraisers After May 2009? (HVCC went into effect on 05/01/09)

June 4, 2009 in Industry News | 22 comments

Dear Local Realtors,

You can still talk to appraisers. The Home Valuation Code of Conduct (HVCC) went into effect on May 1, 2009 and it means that loan departments and other parties cannot influence an appraiser’s opinion of value. HVCC basically means that an appraiser’s opinion should be independent and not have any outside influence to “hit the number” (meet the sales price, meet the minimum amount for loan qualification, etc…).

This sounds fairly straightforward, but the problem is that there is some confusion in the marketplace about who can speak with appraisers. For instance, last week I emailed a local Realtor to ask her about the details of one of her recent sales. I wanted to obtain information about the condition of the property and any financing terms that were not made available in MLS. The Realtor emailed me back and stated that she could no longer speak with appraisers due to the new law (HVCC). Unfortunately this is not an isolated incident, but most of all it is absolutely wrong.

As far as property details, the Listing & Selling Agent are often an outstanding source of information. When we get answers to questions like, “Why did your buyer purchase this one?” or “How come this was on the market for so long?” or “What did you mean by ‘conversion’ or ‘needs TLC’ in your MLS description?”, we get valuable insight. Just think of the word “fixer”, for example, and how this one word in an MLS listing can mean anything from “infested with mold” to “needs new paint”. Discussing details like this is all a part of the appraiser’s job in analyzing the market to determine a fair market value. Besides, we are not even talking about a value here, but only property characteristics. Keep in mind too that most of the time we are asking about properties that we are not appraising anyway because we are trying to get information on potential comparables to use in an appraisal report.

HVCC simply means that nobody can influence us toward a certain value opinion. Can you still provide property details? Yes. Can you help us understand a certain neighborhood market better? Absolutely yes. Are you able to give us insight into the financing of one of your deals? Yes. Are you within the law to coerce us and influence an opinion of value? No. That’s the gist. 

Your insight is valuable and providing basic information to appraisers really helps us do our job well. Thank you in advance for your communication and expertise. 

Your local appraiser,

Ryan Lundquist
Lundquist Appraisal Company
PH: 916-595-3735 
FAX: 916-361-1964
EMAIL: ryan@lundquistcompany.com
WEBSITE: www.lundquistcompany.com

http://www.lundquistcompany.com/blog  Can Realtors Still Talk to Appraisers After May 2009? (HVCC went into effect on 05/01/09)

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NAMB Files a Lawsuit: What Will This Mean for Sacramento Region Agents and Brokers?

February 26, 2009 in Industry News | No comments

When talking recently with local Realtors, Brokers, and Loan Officers about the Home Valuation Code of Conduct (HVCC), there has been concern and fear about how HVCC might shape the mortgage industry, not to mention, their business. 

Important News from the National Association of Mortgage Broker website:

McLean, VA – The National Association of Mortgage Brokers (NAMB), with the support of Baker & Hostetler LLP, filed a lawsuit today with the United States District Court for the District of Columbia against the Federal Housing Finance Agency (FHFA) Director James B. Lockhart over the controversial Home Valuation Code of Conduct (HVCC) included in the appraisal agreements between the FHFA, Fannie Mae and Freddie Mac (GSEs), and New York Attorney General Andrew Cuomo. 

What does this mean for local mortgage brokers, real estate agents, and all involved parties (including appraisers)? Well, there is nothing definitive to report, but with the lawsuit filed it may be possible to see the deadline for HVCC postponed ,or who knows, maybe they’ll throw it out altogether. We shall see.

http://www.lundquistcompany.com/blog NAMB Files a Lawsuit: What Will This Mean for Sacramento Region Agents and Brokers?

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