NAR Praises FHFA On HVCC Clarification Request

Posted by Orb Staff on July 27, 2009 No Comments
Categories : Residential Mortgage

tional Association of Realtors (NAR) has issued a statement praising the Federal Housing Finance Agency (FHFA) for its request that Fannie Mae and Freddie Mac clarify points relating to the Home Valuation Code of Conduct (HVCC). NAR President Charles McMillan notes that his organization's members expressed concern over HVCC implementation. ‘Our members were experiencing delayed and lost sales because of poor appraisals conducted often by inexperienced appraisers who were not familiar with the area,’ he says. ‘The ramifications were so great to our members and to the housing industry that I personally met with the New York attorney general's office and with the head of the FHFA to share our concerns.’ McMillan adds that an internal survey of NAR members found that 76% of Realtors experienced an increase in appraisal time since the HVCC was enacted in May and that 71% of Realtors reported an increase in using appraisers who were not from the local area. ‘These factors often adversely affected the sale or the sales process, which occasionally resulted in the loss of a sale or a homeowner's inability to refinance into today's lower rates,’ says McMillan. ‘We took this information and our concerns to those organizations responsible for the changes, and we are pleased that they listened. Fannie Mae and Freddie Mac issued clear guidance on two very important points that we raised in our meetings. First, the guidance states that lenders should use appraisers who have clear experience in the geographic area. Second, it clarifies that appraisers are not prohibited from talking to real estate agents.’ McMillan states that NAR asked Congress and the FHFA to implement an 18-month moratorium on the HVCC rules in order to address ‘unintended consequences of this new rule.’ SOURCE: National Association of Rea

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