Home Valuation Code of Conduct (HVCC)
As you know, the HVCC came out of an agreement between New York Attorney General Andrew Cuomo and Fannie Mae and Freddie MAC. The HVCC provides a code of conduct for appraisals used in Fannie and Freddie loans and sets up an Independent Valuation Protection Institute to monitor the appraisal business. The institute will accept complaints from consumers and appraisers regarding the conduct of appraiser professionals. The largest concern stemming form the proposed HVCC dealt with Appraisal Management companies.
On the federal level, HR 3126 was introduced to create the Consumer Financial Protection Act. The bill cleared the House Financial Services committee with an amendment that would sunset the HVCC. The amendment requires the new Consumer Financial Protection Agency to come up with rules on appraisal independence within 60 days of passage. The HVCC would sunset at the adoption of this rule. We continue to monitor the progress of this legislation, and will keep you informed of any new updates.
AMC Regulation
In response to the increased presence of Appraisal Management Companies (AMC’s) in today’s market, MiCREA authorized the formation of a task force to look at the model act to regulate AMCs. After several meetings, the task force has released a work product that would adopt the model act into current Michigan law.
Since then, the MAR Public Policy committee has voted to support the draft issued by the AMC task force. MAR staff has begun meeting with DELEG and members of the legislature on introduction and passage of the legislation. No bill sponsor has been selected yet, but we will keep you updated as this policy moves through the legislative process.