The Home Valuation Code of Conduct (HVCC) is playing havoc with real estate transactions.
HVCC regulations came into effect on May 1st and limit the contact between appraisers, lenders and REALTORS® when Fannie Mae and Freddie Mac loans are used in a transaction. The unintended consequences of the new regulations are that many consumers now have to pay for multiple appraisals and homes are not apprasing which has prevented many transactions from closing.
Several organizations are currently pressuring law makers and regulators to impose a moratorium on the enforcement of HVCC regulations.
What can you do as a buyer? Make sure your Realtor, or the Realtor representing the seller meets the appraiser at the property and ensures the appraiser has all of the relevant information on the property and comparable sales, including any deficiency information on comparable homes that may have sold for a lower value.