You may remember this image from the cover of the September/October 2009 issue of Commonwealth. As much as we like that cover and story, you can now forget all about them.
New appraisal independence standards will replace the Home Valuation Code of Conduct (HVCC) within 90 days now that President Obama has signed the financial reform bill. According to HousingWire:
The “appraisal independence standards” will be written over the next 60 days. The newly enacted bill, unlike HVCC, allows Fannie Mae or Freddie Mac to accept any appraisal report completed by an appraiser selected or paid by a mortgage loan originator.
The reform also stipulates that the new standards will include a requirement that lenders and their agents pay appraisers at market rates.
The new standards will still subject loan originators to any state or federal laws that prohibit it from making payments, threats or promises to an appraiser to influence the work. But nothing in the standards will prohibit a person with an interest in the transaction from asking the appraiser to consider other information, provide further detail or correct errors in the appraisal.