HVCC has proven to be a disaster and may wind up impacting you at the very least when you do your next real estate transaction (if it doesn't create lower home values from bad appraisals done on purchase transactions in your neighborhood).
The National Association of Mortgage Brokers has a call to action to try to stop or atleast put a moritorium on HVCC so that it can be further researched.
Please call your Representatives today and urge them to cosponsor H.R. 3044. The bill was introduced by Representatives Childers (D-MS) and Miller (R-CA) and it calls for an 18 month moritorium on the Home Value Code of Conduct (HVCC). Click here for a copy of NAMB's press release on H.R. 3044.
When you speak with your Representative, simply ask when they plan to sign on as a cosponsor of H.R. 3044. Click here for contact information for your Representative.
New Home Appraisal Rules Stir Industry Backlash – Associated Press (July 14, 2009)
Low Ball Appraisals Spark Uproar –
I have a good friend that is buying a new construction home which has been in construction since his contract in March of 2008. He just got two appraisals back from the developer’s lending office. They had two MAJOR lenders work up his loan. His contract is $475,000 +/-
1st Appraisal $340,000
2nd Appraisal $500,000
My opinion of value for the house is $410,000.
His $45,000 deposit is now potentially lost due to inability to finance. His lawyer is looking into his options. We are sending the reports and details to the NAMB as per their call out for stories about the HVCC.
Both appraisals are performed within the same week on the same house and are HVCC compliant. Call your Reps, these rules have got to go.
AJ, I think your friend should also contact the New York Atty General’s office since Coumo had a big part in creating HVCC.