Posts Tagged ‘Real estate appraisals’

Working with HVCC Regulations

November 19th, 2009

A recent article in Banker & Tradesman suggests that consumer confidence in the real estate market is coming back. Coming out of the 2009 Realtors Conference & Expo in San Diego, the article indicates that in spite of the decline of the market, buyers are still looking for vacation and recreational properties.

Industry experts, however, still appear to be concerned about issues surrounding real estate appraisals and the unintended consequences of the implementation of the Home Valuation Code of Conduct (HVCC). As we have discussed in other blog posts, the perceived problem is that appraisers, working for appraisal management companies, are often working outside areas with which they are familiar and may not have access to information about specific markets. Realtors argue that as a result of valuations that sometimes are too low, sales have been delayed and even cancelled.

This Banker & Tradesman article provides some interesting suggestions by realty agents of ways to work with the HVCC changes, including providing appraisers with detailed property comparison information and background materials to help appraisers achieve the most accurate appraisals.

As always, Present Value LLC is both an appraiser and an appraisal management company, which means that it can play the role of the third party required by the HVCC changes and save you the step of having to seek out a separate appraisal management company.

By: Present Value

Present Value LLC and the upcoming HVCC changes

March 31st, 2009

Earlier this month, we wrote about the Home Valuation Code of Conduct (HVCC) changes that will go into effect on May 1 of this year. You can read the full post here. Essentially, the changes state that lenders seeking a conventional appraisal, as opposed to an FHA appraisal, will be required to find an appraiser through a third party, such as an appraisal management company.  

If you’re seeking an FHA appraisal, your interaction with Present Value won’t change. Because the HVCC changes don’t affect FHA appraisals, lenders can still contact Present Value directly. And more good news – if you’re seeking a conventional appraisal, your interaction with Present Value will also remain the same. Present Value LLC is both an appraiser and an appraisal management company, which means that it can play the role of the third party required by the HVCC changes and save you the step of having to seek out a separate appraisal management company. One of the principles to which Present Value adheres is to provide the best possible customer service. As these changes go into effect and people begin to navigate what the changes mean for them, we hope that the lack of disruption in service you’ll experience by working with Present Value will prove our dedication to this principle.

In other news, have you had the chance to check out our introductory video? Click here to watch.  

By: Present Value

Upcoming HVCC Changes

March 10th, 2009

The Home Valuation Code of Conduct (HVCC) dictates rules regarding the interaction between appraisers and the lending industry. A copy of the full HVCC can be found here. On May 1, 2009, changes to the HVCC will go into effect. The changes state that rather than going to an appraiser directly, lenders must order a real estate appraisal through a third party, such as an appraisal management company.

It is important to keep in mind that these changes only affect the way that conventional appraisals are obtained and not Federal Housing Administration (FHA) appraisals for FHA-insured loans. Lenders will still be able to order an FHA appraisal directly from an FHA-approved appraiser after May 1, 2009.   The underwriting requirements for an FHA-insured loan are stricter than those for a conventional loan, and the fundamental difference between an FHA appraisal and a conventional appraisal is the FHA appraiser’s focus on the health and safety of the borrower. Both types of appraisers look for standard characteristics that can affect the value of a property, such as the location of the property, the overall real estate value in the area, or a flaw that could negatively impact a home’s value, like a crumbling foundation. But an FHA-approved appraiser takes the appraisal a step further and looks for environmental toxins like asbestos, mold, and peeling lead paint; and safety features like handrails, smoke detectors, and window screens.  

The certified and licensed appraisers at Present Value LLC are FHA certified and experienced with this type of appraisal. Click here to order a real estate appraisal. By: Present Value LLC