Trying to fix the new appraisal rules
Below is a letter from the National Association of Realtors President. Realtors around the country have been diligently working to combat the new rules regarding appraisals. The rules were a complete over reaction to some questionable practices that we saw during the boom. However, as it so often happens, the fix created more issues than the original problem. The letter below shows that we have made some good progress in getting the “fix” fixed.
To: All REALTORS®
From: Charles McMillan, 2009 NAR President
Re: UPDATE: FHFA and GSEs Act on HVCC Concerns
Dear Fellow REALTOR®,
I am writing to you with an important update on NAR’s efforts to address ongoing
problems with recent changes to appraisal rules.
As a direct result of my recent meetings with the New York Attorney General’s office, the Federal Housing Finance Agency, and Fannie Mae, both Freddie Mac and Fannie Mae this week issued new guidance to all lenders on the Home Valuation Code of Conduct.
The alert clarifies two very important points that we raised in our meetings with
officials. First, it 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.
http://www.fhfa.gov/webfiles/14611/hvcc_NOTICE_7_22_09F.pdf
In addition to this guidance, both Fannie Mae and Freddie Mac recently posted
extensive Qs and As on their respective web sites, based on information that NAR
provided when the code was first adopted in May.
https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/appcode/pdf/hvccfaqs.pdf
http://www.freddiemac.com/singlefamily/hvcc_faq.html
We have posted links to all of this information at www.Realtor.org/HVCC.
Although this is certainly a step in the right direction, more still needs to be done
to address problems with the HVCC. NAR will continue to push for a moratorium
on the Code, and I will continue to meet with industry partners and officials to
convey our concerns.
Thanks to all REALTORS® who have shared experiences and concerns with us.
Once again, you have proven that we are the “Voice for Real Estate,” and I am
proud to serve as your 2009 President.
Sincerely,
Charles McMillan, CIPS, GRI
2009 NAR President
