On August 4, 2009, NAR President Charles McMillan sent a letter to Federal Housing Finance Agency (FHFA) Director James Lockhart addressing the agency's recent guidance on the Home Valuation Code of Conduct (HVCC). The Guidance states that HVCC should mitigate controversy by increasing protection for appraisers. In the letter, Mr. McMillan applauds FHFA for its efforts to address misinformation surround the Code but disagrees that the HVCC is appropriately dealing with the controversy surrounding the appraisal process.
NAR cites survey data that seems to indicate that the Code is creating negative unintended consequences. "According to a survey of our members, 76 percent of respondents said the length of time to obtain a completed appraisal report increased after May 1, 2009. More than one third of REALTORS® have lost at least one sale because of a delay in the appraisal process. At the same time, respondents who identified themselves as appraisers said their time frame to submit an appraisal report has decreased and half of these respondents say this impacts the quality of the appraisal report." At the same time, the cost to the consumer is increasing.
NAR Letter to FHFA on HVCC Clarification
FHFA Guidance on HVCC
NAR's HVCC Web Page
