HVCC: Home Valuation Code of Conduct

Maybe you’ve heard, and maybe not- but either way things are changing. HVCC goes into effect tomorrow. HVCC stands for “Home Valuation Code of Conduct” and it’s definitely going to change things a bit. The basics, as it affects your lives and businesses are that appraisals are likely to be a little slower and more expensive starting tomorrow.

Many appraisers are leaving the business all together because of this new legislation. Because of the coercion of appraisers in New York by WAMU retail. Fannie Mae and Freddie Mac adopted the solution of the NY Attorney General and now it’s the law. NO person involved in the loan production process (loan officers, processors, assistants or anyone else that touches a file) can have any contact with an appraiser. It’s too bad, because many of us have long standing relationships with our business referral partners. Now there is another hand in the proverbial “cookie jar” in the form of appraisal management companies.

These companies have always existed. They were great to use if you needed to order an appraisal that was in an area that you weren’t familiar with; but now we have to use them every time. Also, with another layer of management, there is less money in it for the appraisers.

Alpine Mortgage has a good solution to the issue. We have contracted a company that charges a flat- per appraisal fee and added all of our trusted appraisers to a specific “Alpine Mortgage” list. The appraiser will be randomly selected from this group of tested professionals. We feel like this is a good solution. At least we wont have to worry about someone that we don’t know getting ahold of and possibly hindering a purchase. The flat fee for all appraisals with Alpine Mortgage is now going to be $470 for standard full appraisals. The costs are different on high-end or unique properties, as they’ve always been, but this is the standard.

It’s unfortunate that we have to raise the fees, but this way our designated appraisers aren’t taking the full lump on the head and we can keep the solid professionals in the business.

Thanks for reading.