Home Valuation Code of Conduct (HVCC)
The Home Valuation Code of Conduct (HVCC) establishes standards for solicitation, selection, compensation, conflicts of interest and appraiser independence. It is effective May 1, 2009, for any mortgage that will be sold to Fannie Mae or Freddie Mac; Federal Housing Administration (FHA) and Federal Home Loan Bank (FHLB) mortgages are not covered in the agreement.
Latest News:
HR 3126 Passes House Committee with HVCC Amendment (Oct. 22)
IVPI Interim Complaint Process Available in November 2009 (Oct. 12)
Video: President's Update for AEs and GADs (Sept. 25)
New Resources:
Video: HVCC - Appraisal Rules Are Posing a Challenge
One-Page Summary: REALTORS® Concerns with HVCC (PDF: 130K)
NAR HVCC State Action Info Pack (PDF: 285K)
NAR Research: The Impact of HVCC (PDF: 294K)
FHFA New Guidance Notice on HVCC (PDF: 83K)
Fannie Mae HVCC FAQ (PDF: 55K)
Freddie Mac Home Valuation Code of Conduct Q&A
How HVCC Affects the Appraisal Process
REALTORS® and mortgage brokers are prohibited from selecting appraisers. Lenders are may use “in house” staff appraisers to conduct appraisals. However, the loan production staff is prohibited from:
- selecting, retaining, recommending, or influencing the selection of an appraiser; and,
- conducting any substantive conversation with an appraiser or appraisal management company regarding the appraisal assignment.
For the consumer, the appraisal process has remained largely intact. However, consumers may find the process takes longer than and may be more costly than it has been in the past.
For More Information
President's Podcast: Legislative Update on HVCC
NAR's HVCC FAQs (PDF: 269K)
NAR's HVCC Myths and Facts Flyer (PDF: 345K)
Complete Home Valuation Code of Conduct (PDF: 28K)
