Tuesday, September 29, 2009

New Appraisal Rules Cause Problems and Delays

In July the National Association of Realtors (NAR) polled its members to ask about the results of implementation of the Home Valuation Code of Conduct (HVCC) on May 1, 2009. Apparently the Grove Team is experiencing in Keller, Southlake, Grapevine, North Fort Worth, NRH, and HEB the same problems that realtors are finding nationwide. We are finding that it takes longer to receive an appraisal in North Texas, and 76% of agents in the country are finding similar delays. At the same time, appraisers are indicating that they have less time to complete appraisals. The reason for this inconsistency is that lenders can no longer order appraisals directly; appraisals must be ordered from a third party appraisal management company.

Designed to reduce mortgage fraud, the rules eliminate contact between the lender and the appraiser. It's true that when abused, lender contact with the appraiser can lead to invalid appraisals. However, in the usual course of business, lender and appraiser contact can also lead to clarification and even more worthwhile appraisals.

It seems that the new rules have resulted in more expensive, less accurate, and slower appraisals. One more case of rules imposed on all of us that make life more difficult when only a relative few greedy individuals created abused the system.

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