A Loos Blog

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I have been told that the Home Valuation Code of Conduct (HVCC) does not allow loan or real estate agents to speak with the appraiser.  Every time I hear this I try and set the record straight.  Well I heard it again today so here we go, again.

For the record:  the appraiser can talk to the lender, processor, broker, realtor, agent, owner, inspector, contractor, landscaper, trash collector, hair dresser or anyone else who can provide relevant information about the property. 

Simply put, the HVCC states that the real estate and loan agents can not order the appraisal.  You see, these folks earn a commission and therefore have a vested interest in getting the deal closed.  The appraiser on the other hand is supposed to be a neutral third party that is paid regardless if the transaction closes or not.

The HVCC was designed to build a firewall between these commission based folks and the appraiser.  But, and PLEASE read this carefully, nowhere does the HVCC even hint that the appraiser is not allowed speak to the lender, real estate agent, home owner or anyone else!   

There are many reasons that the HVCC is being misunderstood, not the least of which are the monumental changes in the lending industry.  Do yourself a favor, take 10 minutes (really, only 10 minutes) and read the 6 page HVCC for yourself, and then browse the FAQ’s on FNMA website.

Then, pass what you learn along. 

The HVCC and FAQ’s