Who enforces the HVCC?
The Home Valuation Code of Conduct (HVCC) between lenders and appraisers went into effect June 1st. There’s been many comments about how real estate transactions have been affected in the last month. But when there’s a problem with someone not following HVCC guidelines, where is a complaint filed?
NOWHERE!
That’s right, nobody currently enforces the HVCC. An entity called the Independent Valuation Protection Institute (IVPP) handles complaints. According to the code:
An Independent Valuation Protection Institute (Institute) shall be created as approved by the parties. Subject to section IX, when the Institute is established, the lender will provide information to appraisers and borrowers regarding the availability of the Institute’s services, which are expected to include: (1) a telephone hotline and email address to receive any complaints of Code of Conduct non-compliance, including complaints from appraisers, individuals, or other entities concerning the improper influencing or attempted improper influencing of appraisers or the appraisal process, which the Institute will review and report as provided in IV.B(8) and IV.C(2) of this Code of Conduct; and (2) the publication and promotion of best practices for independent valuation. The lender shall not retaliate, in any manner or method, against the person or entity that makes a complaint to the Institute.
But one month later, it still doesn’t exist. Even Fannie Mae and Freddie Mac acknowledge this fact:
The structure of the IVPI has not yet been determined and the IVPI has not yet been established. Therefore, the provisions regarding it in the Code are not yet effective.
So right now HVCC regulation is like speeding on the Autobahn – there’s nobody to tell you not to do it.
Start spreading the news...
This article published on Friday, July 3rd, 2009 at 1:06 am | Contact the editor
Topics: Economy, Editorials
About this Columnist (Full Profile)
As the son of two music teachers, Ben spent his first 21 years trying to make a living with his slightly above average trumpet playing. After no return calls from Dizzy Gillespie and then a failed attempt at becoming a fly girl on “In Living Color,” he switched gears and finally found his nichè in real estate. He’s a Minnesota appraiser and also a Realtor with his better half, Stacia.
Labeled “one to watch” from an anonymous source (thanks mom), Ben is smart, good looking, athletic and a rock star inside his own head. He also never passes up a chance to write his own bio. Find him online at twitter or selling Stillwater Real Estate.
Email Ben Goheen
The Daily Hot Sheet
The AGBeat Daily is jam packed with today's news headlines, fresh and neat in your inbox- start the day ahead of the curve.
Comments (17)
Trackback URL | Comments RSS Feed
Social Shares & Links Back
- Real Estate Feeds:
Who enforces the HVCC?: Don\’t be stingy with your thoughts- stop by and comment!The Home Valuation Code of Cond.. http://tinyurl.com/lp6zqu
- PopREblogs.com:
Who enforces the HVCC?: Don\’t be stingy with your thoughts- stop by and comment!The Home Valuation Code of Cond.. http://tinyurl.com/lp6zqu
- AgentGenius:
#agnow So … fear, ignorance and blind assumptions are enforcing the HVCC? http://cli.gs/T8Udu
- AgentGenius:
#agnow are you KIDDING? what a joke! http://cli.gs/UR3yG
- AgentGenius:
#agnow @Lani – thanks for Facebooking this so I’d come read it.
Explains why the NAR prez went to New York to sp… http://cli.gs/1vQqD
- Bridget Magnus » Friday Figures for 7/3/2009:
[...] the rules both nationally and in each state where they operate (more on that another day). HVCC is a new set of appraisal regs, and nobody knows how to enforce them yet. This story is important to Realtors, buyers, sellers, and mortgage people because it directly [...]
- AgentGenius:
#agnow [...] the rules both nationally and in each state where they operate (more on that another day). HVCC is a n… http://cli.gs/eMgDV
- Joe Spake:
Who enforces the HVCC? via Real Estate Opinion MAG – AgentGenius http://bit.ly/zlPH
- AgentGenius:
#agnow Ben,
The HVCC (they meant for the acronym to read “HAVOC”) actually became effective May 1, 2009.
Don… http://cli.gs/nyjLV
- AppraiserUSA.com:
Who enforces the #HVCC? http://bit.ly/ht4Dl
- Appraisal Scoop:
Reading: “Who enforces the HVCC? | Real Estate Opinion MAG – AgentGenius” (http://twitthis.com/edtfze)
- Appraisal Scoop:
Reading: "Who enforces the HVCC? | Real Estate Opinion MAG – AgentGenius" (http://twitthis.com/edtfze)
- Is MBA telling the full story? | Real Estate Opinion MAG - AgentGenius:
[...] I’m sure most of you have already heard, the HVCC has greatly impacted the way lenders and appraisers work together. However, the [...]
Benn Rosales
Conal Campbell
Elijah May
Lani Rosales
Tara Steele
Marti Trewe
Charlene Jimenez
So … fear, ignorance and blind assumptions are enforcing the HVCC?
are you KIDDING? what a joke!
@Lani – thanks for Facebooking this so I’d come read it.
Explains why the NAR prez went to New York to speak directly to the Assistant Attorney General, then went to DC to lobby lawmakers to change the rules.
The “pending sales” index – used by many talking dumba…. I mean talking heads to tout a recovery, is simply a crock because of the HVCC and appraisal issues. When sales continue to slump and pending sales continue to go up, the only possible reason is appraisals are causing more and more failed contracts.
Oh, and:
“the Institute will review and report as provided in IV.B(8) and IV.C(2) of this Code of Conduct;”
To whom??
Navy Chief, Navy Pride
Ben,
The HVCC (they meant for the acronym to read “HAVOC”) actually became effective May 1, 2009.
Don’t hold your breath waiting for the IVPI. As you know, it’s supposed to be funded by Fannie and Freddie and they’re just a little short of liquidity right now.
Our best bet is H.R. 3044, the bill that requires an 18 month moratorium on the HVCC.