HVCC Causing a Drop in Home Values

McLean, VA – September 16, 2009 – The National Association of Mortgage Brokers (NAMB) has received thousands of complaints from mortgage brokers, appraisers, realtors, and consumers about their negative experiences caused by the Home Valuation Code of Conduct (HVCC).  In conjunction with the implementation date of the HVCC, NAMB launched an email address to collect such specific examples of how the HVCC affects the mortgage and housing industry.  One of the major problems caused by the HVCC is inaccurate appraisals, which are lowering house prices.

“NAMB has found that many of the complaints received over the HVCC consistently describe out-of-area appraisers unfamiliar with the neighborhood being contracted to appraise homes,” said NAMB President Jim Pair, CMC.  “Unfamiliar appraisers are inaccurately appraising properties and lowering home values, severely hurting consumers.” 

Several recent news articles (listed below) recognize the growing problem of dropping home values caused by the HVCC.  Homeowners are affected in two different ways: it lowers their home equity value regardless of whether or not they are refinancing a home and, more importantly, these appraisal inaccuracies are lowering the tax base of communities.  This requires taxpayers and voters to either pay more taxes or experience reduced funds for schools, roads, and other service expenditures. 

Transferability of loans between lenders has been severely hampered by the HVCC and is causing the consumer to pay additional fees for new appraisals.  Also, because of slow turnaround times, consumers are forced to pay additional fees for rate lock extensions so they can keep the more affordable rate.

“Problems caused by the HVCC are slowing the housing recovery and affecting homeowners not even involved in a housing transaction,” said Pair.  “The HVCC, which was not voted on by Congress or issued by a federal regulatory agency, is seriously impacting mortgages nationwide.”

NAMB has recently issued a HVCC Petition for consumers to sign requesting that the HVCC be repealed immediately to prevent further harm to borrowers and the industry.  The HVCC increases costs for consumers to obtain a mortgage, significantly slows down the time it takes for them to obtain a mortgage, eliminates competition in the industry, and centerpieces unregulated appraisal management companies.

Articles:

BusinessReport – “Disaster Declaration”

BigBuilderOnline.com – “Low Appraisals Hit Housing Market”

Washington Times – “Mortgage Q&A: Lenders need skilled appraisers”

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The National Association of Mortgage Brokers is the voice of the mortgage broker industry with members in all 50 states and the District of Columbia. NAMB provides education, certification and government affairs representation for the mortgage broker industry, which originates over 50% of all residential loans in the United States.