The NAMB alleges that the HVCC will 'drastically reduce the ability of mortgage brokers to provide consumers with an efficient and cost-effective means of obtaining a mortgage'.
It is important to understand what HVCC is before discussing the effects it made in the mortgage processes. This is the Home Valuation Code of Conduct adapted last May 1, 2009. The HVCC has presented a big change in the appraisal system of the real estate industry. The change affects the lenders, the sellers and the buyers. This is implemented because of the fraudulent appraisals done by the various appraisers in the past.
The HVCC or Home Valuation Code of Conduct was recently implemented by Fannie Mae and Freddie Mac as a new system of appraisals in the U.S. Under the rules, many of the appraisals are handled by management companies (some of which are also owned by the lenders themselves). The system is designed to reduce fraud and lower costs with an improved appraisal.
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