HVCC (The Home Valuation Code of Conduct)

I have been trying to hold my tongue until this new way of doing business with conventional loan appraisers was in place for a bit. I had hoped that somehow the powers that be would work out the kinks. I don't think it is going to happen. All Freddie Mac and Fannie Mac loans are affected which is basically most all of the conventional loan market. This affect's MIG, all banks, brokers and mortgage bankers. So you can't avoid it if you do a conventional loan.In case you don't know about HVCC you are probably fortunate, since it hasn't bit you yet. Here are the details. Neither the loan officer (that is me), my processor, anyone in my office the Realtor or the builder is allowed to know who will do the appraisal, where they work, nor can we ask for any particular value. Supposedly the appraiser is to work only in areas he knows, but from what I have seen that is questionable. We can have no contact whatsoever. The Realtor and home owner can speak to the appraiser, but that is about it. In many cases an appraisal management company will perform this ordering and monitoring service. Guess what that did to the price of the appraisal? And it also guaranteed a longer turn around time. Fortunately MIG didn't go the route of the appraisal management company. I believe that most of the horror stories originate with them. Once the appraisal has been received by the lender it is sent to the borrower. The loan then cannot close for three business days. I can see no benefit in that. Fortunately we just were given authority to waive this in some cases. To avoid the appraisal management company, our home office has set up a blind draw of appraisers who have done business with MIG over the years.It is just like being in middle school. Someone in class misbehaves and the whole class is punished. So the honest real estate practioners are being punished for the sins of those who violated ethical laws. With all this said , this is all the more reason to direct your transaction to someone who knows the ropes (That is George's Team) so that when and if problems arise, we can do our best to make things work out.