WHAT IS HVCC as set by FHA?
It is the HOME VALUATION CODE OF CONDUCT guidelines to track appraisal rules & agreed by
Fannie Mae, Freddie Mac & NY State Attorney General. HVCC was founded to keep an arm’s length
between the lenders ordering the appraisal & those who benefit on a commission basis from the outcome of that appraisal. Nowhere does it say you have to (1) us an appraisal management company, (2) pay the appraisers less or (3) get appraisers to drive to a remote location where they
don’t understand that market. It says the appraiser should be from the local area & should understand the area, which is required by the Uniform Standards of Professional Appraisal Practice
anyway. This brief from a longer article by David H. Stevens, President Obama’s assistant secretary for housing-federal housing commissioner at the U.S. Department of Housing & Urban Development.
This code is being hailed by most in the industry as improving the HVCC.