REALTORS® get help to thwart HVCC

The Home Valuation Code of Conduct (HVCC) is not going away, according to Jerome M. Nagy, the National Association of REALTORS®’ (NAR) senior regulatory policy representative.

“While the original agreement expires in 2010, the HVCC requirements have been added into the GSE’s Seller/Servicer Guides indicating that it will be renewed,” Nagy said during the PA Association of REALTORS® (PAR) September business meetings.

The HVCC became effective on May 1, 2009. It establishes standards on solicitation, selection, compensation, conflicts of interest and appraiser independence. The unintentional consequences of the HVCC have been under fire by REALTORS® across the nation.

In the past few months, NAR members have pressed President Charles McMillan to focus on their concerns.

A recent NAR survey revealed 76 percent of respondents experienced increased delays in getting an appraisal; 37 percent reported lost sales and 71 percent noted an increase in out of area appraisers.

NAR is pushing for an 18-month moratorium on the HVCC and is encouraging state associations to introduce legislation to regulate Appraisal Management Companies (AMCs), the only unregulated entity in the appraisal process.  

Michelle Bradley, chair of PAR’s AMC Task Force, agrees. The task force, in collaboration with members of the Appraisal Institute, Rep. Dick Stevenson (R-Mercer) and Rep. Sue Helm (R- Dauphin) are proposing legislation that would place AMCs under the jurisdiction of the State Board of Certified Real Estate Appraisers.

The legislation would require AMCs to register with the state board; give the board review of AMC records; require that reviews be conducted by a certified appraiser; require AMCs to adopt USPAP recordkeeping rules and prohibit improper influence on appraisers.

Stevenson, prime sponsor of the proposed legislation, hopes to vet hearings on the legislation in the House Professional Licensure Committee.

With some 5,000 bills introduced each session and only 250 becoming law, Stevenson says he is glad to have the REALTORS® support.

Draft legislation was approved by the Legislative Committee and the board of directors. Once officially introduced, support of the legislation will be reaffirmed.

Related posts:

1. Bill would regulate Appraisal Management Companies
2. State appraisal board outlines new guidelines for appraisal trainees

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Tags: HVCC

This entry was posted on Wednesday, September 30th, 2009 at 4:59 pm and is filed under Industry News. You can follow any responses to this entry through the RSS 2.0 feed.