The House Financial Services Committee has approved the Consumer Financial Protection Agency Act, which will establish an agency to regulate consumer financial products.
What you may not realize, though, is that within that bill is a “sunset” provision for the Home Valuation Code of Conduct — the HVCC. (Shameless plug: Check out our feature story about HVCC from the September issue of Commonwealth magazine)
The provision, introduced by Rep. Gary Miller (R-Calif.), is part of an effort to call on regulators to streamline existing appraisal independence rules into one set of standards. Regulators could then “sunset” and retire the HVCC, according to a statement from Rep. Miller’s office.
What does that mean? It means that the newly created CFPA would be required to rewrite the HVCC’s appraisal rules to make them less confusing, and that the HVCC itself would be ‘turned off’ as soon as that process is complete.
This legislation is far from final, but while this may not be a clear and definitive step toward fixing or removing the HVCC, it certainly is a step in the right direction.