Dec 21 2009

New Financial Protection Agency

Published by at 8:48 am under General Information

Congress took a major step last week toward eliminating what has been a painful thorn in the side of home sellers, Realtors, home builders, mortgage brokers and appraisers for months. As part of its financial and mortgage industry reform bill, the House voted to terminate the controversial Home Valuation Code of Conduct (HVCC) once a new Consumer Financial Protection Agency begins operations.

On the day the new rules are adopted, Fannie and Freddie will be prohibited from using their much-maligned home valuation code. Fannie’s and Freddie’s rules have been criticized for producing lowball, inaccurate valuations; cutting appraisers’ fees to the point where the most experienced professionals refuse to accept low-pay assignments; plus encouraging the use of inexperienced appraisers unfamiliar with local markets – and a long list of other problems.

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