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Purchasing a Home, Appraisals - July 16, 2009

In Part 3 of our "Purchasing a Home" series we're going to discuss the latest Appraisal issues arising from the new HVCC or Home Valuation Code of Conduct law. Mortgages Made Simple logo

As of May of this year the HVCC law , which was passed to eliminate pushing values artificially high on appraisals, has created a little bit of a stir in the real estate industry. The 2 biggest issues are delays in receiving appraisals and appraised values coming in too low.

The delays are being caused because the appraisal must be ordered by the lender doing your loan. So your appraisal isn't being ordered until your loan officer decides where to send your loan. Then the lender orders the appraisal after your loan is reviewed by the lender's underwriter. Also, the people ordering the appraisal are doing too many jobs and the remaining appraisers are backed up, so with all of these obstacles now in place the appraisal can take up to 2-3 weeks to get.

The second issue is values are coming in low because appraisers unfamiliar with the areas are being used.

So be aware your appraisal may take a couple weeks to get and the value may be lower than expected. Hopefully your real estate agent did their homework and has the ability to help out the appraiser.

If you have any questions you would like us to answer on our show, please call our listener line at 714-519-7833 or email

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