Teamwork Is Key Under HVCC

Over twenty five years in real estate and lending has taught me one thing; expect change, nothing stays the same. With this in mind, welcome HVCC. The Home Valuation Code of Conduct is making real estate professionals, both Realtors and lenders, pay closer attention to the mortgage loan "process" and keep a close eye on key dates. The days of submitting a contract to a lender and having the appraisal back within hours are gone; under HVCC, be prepared to wait up to two weeks for an appraisal; and this assumes the lender is placing the order immediately. Any delays on the front-end process may cause significant delays near closing.

Why? HVCC rules restrict the open lines of communication that once existed between the lender (loan officer) and appraiser. Anyone related to loan production (i.e. loan officer, processor, underwriter, etc.) are prohibited from selecting the appraiser and placing an order; they must now direct appraisal requests through an Appraisal Management Company (AMC). In addition, questions related to "value" are prohibited without a formal appraisal being completed. These rules are not necessarily a bad thing; HVCC has been put in place to protect our borrowers from unscrupulous lenders and unrealistic values.

Members of Real Finance Solutions and our partners need to be proactive to guide our clients through the mortgage loan process, anticipate potential delays, and take the necessary steps to avoid delays. What can be done:

• Realtors, once a purchase agreement has been executed, deliver the complete contract with all addendums to the lender.


• Realtors, make sure the lenders has a complete list of interested parties and their contact information; i.e. listing agent, home inspector, title company, closing agent, etc.


• Lenders, review the entire contract, addendums and contact information upon receipt with no delays and understand the dates outlined in the contract.


• Lenders, once the inspection has been approved, do not delay ordering the appraisal. You are now on the clock.


• Realtors and Lenders, communication is key to a successful transaction.

Debate will continue as to whether or not HVCC rules should remain, but for now, the guidelines stand. As buyers re-enter the market, we must all be prepared to deliver quality service. HVCC simply raises the bar and requires that all interested parties to a real estate transaction communicate effectively and have a complete understanding of the entire transaction.

Real Finance Solutions strives to educate our members on the details so our respective clients are receiving the best service available.