I came to know about a new breed of AMC’s like kstreet-appraisal.com as recently there has been massive changes in the way that the entire appraisal process is undertaken. All this change in the business operations has taken place because of Fannie Mae and Freddy Mac. As of may 1st, 2009, the Home Valuation of Conduct (HVCC) law has been passed and as a result, the mortgage brokers cannot pick their appraisers. This rule will apply to every lender who was looking to sell off their loans to Fannie Mae and Freddie Mac.
The HVCC came into practice as a result of frequent collusions between the mortgage brokers and the appraisers who often were assumed to be fighting over the real estate prices and their artificial inflation. Looking to solve this problem, Fannie Mae and Freddy Mac is looking to void the mortgage broker from having any contact with the appraiser thereby getting a pretty accurate appraised value.
But this HVCC law raises a few doubts such as whether the FHA appraisals will also have to comply with the guidelines or not. But as of now, a FHA appraiser does not have to comply with the above mentioned law. But many people believe that the FHA appraisal will face future scrutiny from the government.
The HVCC came into practice as a result of frequent collusions between the mortgage brokers and the appraisers who often were assumed to be fighting over the real estate prices and their artificial inflation. Looking to solve this problem, Fannie Mae and Freddy Mac is looking to void the mortgage broker from having any contact with the appraiser thereby getting a pretty accurate appraised value.
But this HVCC law raises a few doubts such as whether the FHA appraisals will also have to comply with the guidelines or not. But as of now, a FHA appraiser does not have to comply with the above mentioned law. But many people believe that the FHA appraisal will face future scrutiny from the government.
