In 2008 the Home Valuation Code of Conduct (HVCC) was adopted by Fannie Mae & Freddie Mac. This code was enacted to enhance the overall integrity of the valuation process mainly done by appraisers. In 2009 more rules were added to strengthen the HVCC.
These rules require that lenders (the actual funder of the loan) order the appraisal instead of the mortgage broker. The purpose for this is to keep appraisers from talking to Realtors and Mortgage Brokers while evaluating the worth of a property.
Of course there are differing opinions on how this will affect the Real Estate Market. Some Realtors feel that this method will keep the prices down. Especially with so many deflated short sales and foreclosures used for comparison. A situation that is prevalent in Las Vegas.
I'm one that feels we should give this a chance to see if this method can balance out our Market. If it doesn't though, then I hope we won't wait to long for a correction to the rules.
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