HVCC or “haAppraiservoc” as I call it is changing the way appraisals are performed in all areas of the country, including the Fishers Real Estate market.  The Home Valuation Code of Conduct became effective on May 1, 2009.  It was developed by the New York State Attorney General and somehow became a National solution.  I use the term “solution” loosely.  I think the intent is valid and probably necessary, the execution has flaws.

The code requires a third party, called Appraisal Management Companies (AMC’s) to act as a liaison between lenders and appraisers.  In our area, one such company is called Streetlinks.  The essence is that lenders can no longer select qualified appraisers to complete the loan application.  They work through a third party and an appraiser is selected.  Here are just my favorite three problems with the current HVCC.

  1. It can be an appraiser unfamiliar with the area/county that the selected property is in. 
  2. The timing is up to the third party and can take up to 3 weeks to complete (this from my personal experience).  This will affect the consumer as they may require a longer rate lock period. It is an appraisal mess as Inman News puts it. 
  3. The cost to have oversight will be passed on to the consumer and taken away from the appraiser.

I have interesting stories as this unfolds.  One appraisal used ONLY bank owned in the appraisal even though the neighborhood had other strong comparables.  I have seen buyers required to bring 8.5% rather than 3.5% as their down payment on an FHA loan as a result of the appraiser marking “declining market” on the appraisal. (I was able to pull comparables for 2008 and 2009 to get this changed; the benefit of having an experienced Realtor list your home!).  I have seen an appraisal for $210,000 and $228,000 on the exact same floor plan in the same neighborhood.  So, yes there are problems with the current HVCC and if you have read this post and some of the related articles, I hope you will go one step further and sign the HVCC petition.  There are currently 35,422 signatures as of June 19th.

Other Related Reading:

National Association of Mortgage Brokers Position Paper

Fannie Mae FAQ

Search homes for sale in Fishers by Neighborhood

Search Homes in Fishers IDX      Your Fishers Homes Value CMA

 Cindy “in Indy” Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775