Representatives Childers (D-MS) and Miller (R-CA) introduced HR 3044 last week which requests an 18 month moratorium on the HVCC . This is the Home Valuation Code of Conduct implemented in May and sited by the National Association of Realtors as a major hurdle for the housing markets recovery.
NAR chief economist Larry Yun said “faulty valuations are causing contracts to fall thru because buyers can’t get loans”. Yun also stated “lenders are using appraisers who are not familiar with a neighborhood and compare traditional homes with distressed or discounted sales”.
Another complaint of HVCC is the added cost to borrowers. Fees are higher, processing times are extended due to slow turnaround time, and the appraisals are not portable to different lenders. The lack of portability means a borrower cannot shop for the best deal because they would have to pay for multiple appraisals for each lender. Let’s hope that HR 3044 passes quickly so that the ailing housing market can find traction and consumers can take advantage of historically low rates.
Posted by Mike Owens. Mike is a Partner with Horizon Financial and can be reached at 864 907 2678 or at mowens@horizonfinancial.org
