Real Estate Appraisal New Law
In order to get a mortgage, a real estate appraisal is necessary. Home appraisals are covered by the Financial Institutions Reform Recovery and Enforcement Act of 1989. However, now a new real estate appraisal law has come into effect from May 2009. This is the home value code of conduct, also known as the HVCC. |
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From May 1, 2009, all mortgages for Fannie Mae and Freddie Mac will have to follow the home value code of conduct. It is believed that this new law will change the entire process of home appraisals and the way appraisers are selected for conducting appraisals.
Under this new law, mortgage brokers will no longer have the authority to order home appraisals for mortgages. Many believe that this new law will not only ensure more accurate appraisals, but it will also help to bring down the cost of appraisals.
However, there are mixed reactions. There are others who believe that with the new real estate appraisal law, home appraisals will no longer be reliable since the appraiser may not be familiar with the neighborhood. In addition, now the borrowers will have to wait for the appraisal report before they will know whether the mortgage has been approved or not. This means that there will be delays in getting the mortgages processed and this would mean increased costs.
The opponents of the new real estate appraisal law believe that it will only be beneficial for the national appraisal management companies and not to the common man.
On the other hand, since brokers will not have any contact with the appraisers, the chances of getting a fair appraisal are very high. And, the fact that appraisers would have to be from certified appraisal management companies ensure that qualified and experienced personnel handle the entire appraisal.
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