As of May 1, 2009 Fannie Mae and Freddie Mac are enforcing a new code on how appraisals must be ordered. The code is known as HVCC, or the Home Valuation Code of Conduct. The goal of this new code is to limit the communication between the banker/broker and the appraiser during the home appraisal process. Moving forward as a banker, I am required to use a centralized appraisal management system when I order an appraisal. In the past, I was able to pick up the phone and call my trusted appraiser in order to make sure I would be ordering a quality appraisal from a trusted source. Now, we are required to use a management system that will control which appraisers are chosen based off a list of approved appraisers. I have posted a link to a short video for you to view that gives a detailed explanation of how this new code works and will be enforced.
What is Waterstone Mortgage Doing to Help Our Clients with this New Code?
At Waterstone we have been using this new system since the beginning of April in order to have a good idea of what to expect from this new process. Needless to say, the results we have experienced as a company have fallen short of our expectations. As the video details, the management system is taking much of the profit from the appraiser community. This is going to be an issue since our appraisers will now have to complete twice as many appraisals in order to generate the same amount of income. This is important because twice the workload can mean less time spent on an appraisal which can take away from the overall quality. Additionally, experienced appraisers are being forced out of the business as less experienced appraisers are willing to work for less money. In an effort to control the appraisal process as much as we can, Waterstone is creating our very own centralized appraisal management system! What does this mean? By having our own appraisal management company I can submit a list of trusted appraisers I want to continue to work with. This way I can still be confident a quality appraiser will have the opportunity to receive my appraisal orders out of the group of appraisers I have chosen. This is just another benefit of working with a bank that is committed to getting the job done right.
We all know the appraisal is an extremely vital part of the home purchasing or refinancing process. If you work with trusted appraisers you would like to recommend for my list of appraisers, please E-mail me (mkazell@waterstonemortgage.com) their contact information so I have an opportunity to introduce myself. This is just another change in our constantly changing industry. By working together we can ensure our clients will continue to receive the best service from our most professional appraisers in the industry!
The Mile High City Mortgage Center 