What the HVCC(Home Valuation code of Conduct)

Means to you, the Mortgage Broker

Are you aware that the HVCC goes into effect May 1st, 2009? Do you understand the implications for your business?

What is the HVCC?

Simply put, the HVCC will change appraisals for mortgage brokers drastically. Now, you may have heard things such as the NAMB (National Association of Mortgage Brokers) filing a lawsuit in an attempt to block this law. There has been an overwhelming cry of outrage since this legislation was announced in 2008. However deserved the criticism, we believe that the HVCC is unstoppable. Why? We offer just one good example: the ban against Nehemiah style DPA programs. That legislation also had hundreds of thousands of signatures opposing and a lot of funding against it, yet still passed over our heads.

You will have to resign yourself to the fact that it is a poor climate for today's Mortgage Broker on capitol hill. While we all know there were many parties involved in past events, Brokers are being legislated heavily(example being the new licensing laws). There is so much momentum it seems that laws like the HVCC will continue to have support in Washington.

Of course, the HVCC does not apply to FHA loans, and there is a chance(slim) that it may not pass. However, you are shooting yourself in the foot by not educating yourself about the HVCC and it's new required procedure, such as Double Blind communication. This just means there may be no direct contact between a commissioned salesperson (Managers or Loan Officers). What it requires is the use of either internal management, or an appraisal management company such as Virtue. In our dealings we have seen some investors already state internal management is not accepted.

Face the facts. You may find your brokerage having to order appraisals through a management company. Since Virtue is built on the oldest and largest existing appraisal network nationwide(Alamode's Mercury), you will never have compliance, legal or ease-of-use problems. With the largest single roster of appraisers, you will also never struggle to find a competent appraiser, no matter where your subject property is.

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