Juicy Estates: Mortgage Blog

HVCC May Be History!

The HVCC has been an unmitigated disaster since it’s implementation on May 1st.  Any real estate professional who is active in their market can tell you of the horror stories that HVCC has created, the dreams of home ownership it has destroyed and the high price to the economy, the housing market and the consumer.

But hope springs eternal and it appears that some of the elected officials on Capital Hill are starting to realize that HVCC was just one big mistake.  The House Financial Services Committee has just passed an amendment to the Consumer Financial Protection Agency Act to sunset the HVCC.

An amendment offered by Rep. Gary Miller (R-Ca) would place an 18 month moratorium on HVCC giving legislators an opportunity to create a workable set of standards to oversee the appraisal industry.

“I have repeatedly expressed concern that the HVCC has potential to increase costs to consumers, significantly hinder a consumer’s ability to obtain legitimate and reliable appraisals, and adversely impact small business professionals who work in the very neighborhoods where these consumers are looking to purchase homes,” said Congressman Miller. “In fact, since the implementation of the HVCC on May 1, there are numerous examples of higher costs for appraisals, poor service, the inability to use one appraisal for more than one lender, questionable quality of appraisals, and the inability to make corrections to inaccurate information on an appraisal report.”

A moratorium would mean that lenders could start ordering appraisals through the more seasoned appraisers who work local markets and would no longer be required to use management companies that deliver inferior quality reports completed by the less experienced and the out of area.

The elimination of HVCC would give a significant boost to the housing market at a critical time when the $8,000 first time home buyer tax credit is about to expire and the end of the Fed’s program to purchase mortgage backed securities is on the horizon.

This entry was posted on Thursday, October 22nd, 2009 at 9:54 pm and is filed under Home, Mortgage News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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