Misconceptions Surround Nearing HVCC

Posted by Orb Staff on April 29, 2009 No Comments
Categories : Residential Mortgage

he Home Valuation Code of Conduct (HVCC) going into effect Friday, many lenders have misconceptions about the code and are still not prepared to comply, according to Global DMS, a valuation software provider. Such lenders and correspondents, in turn, are exposed to possible violations, the company says. ‘For example, quite a few companies are under the assumption that using an [appraisal management company (AMC)], will eliminate their liability in HVCC compliance,’ says Global DMS President Vladimir Bien-Aime. "This is simply not the case and can leave them exposed to compliance violations." Other common misconceptions, according to Bien-Aime, are that lenders must use AMCs under the HVCC rather than independent appraisers, that becoming code-compliant requires a large capital investment and that cash-on-delivery payments are still widely accepted. "COD payments are going away, so lenders and correspondents are going to have to manage prepayments in addition to managing the appraisal process," he says. "For some, this will be a big issue." SOURCE: Glo

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