Is there actually hope for the future of the real estate industry, REALTORS(R), mortgage professionals, and specifically appraisers, with H.R. Bill 3044?  Implemented early this year (2009), HVCC (Home Valuation Code of Conduct) has already proven to have thrown a screw into the "mix", and, in the opinion of numerous real estate specialists, still cannot totally prevent wrongdoers from continuing to cheat, when and where they can, and will CERTAINLY not [positively] serve home buyers and sellers who rely on the most accurate valuation of [local] real estate properties.

If you are a real estate professional, mortgage broker, investor, or consumer, it is important to educate yourself about the changes made to home valuation (appraisal) methods and procedures, pertaining to HVCC. Although codes of conduct, reliability, and responsible professionalism are always important components in the home buying/selling process, even as we have learned of certain wrongdoings and illegal acts that existed in the past, HVCC has created unnecessary "middle man" interferences. 

The "middle man", a.k.a. asset management companies (AMCs) are currently seen by some regulators to be necessary and mandatory components in the residential appraisal process. Many more see it as inevitable increased costs for consumers, decreased income for qualified appraisers, and inadequate and incorrect residential home appraisals (valuations), which ultimately affect all of us...mainly consumers.

Anytime additional entities are added to a mix, we will see increased costs for everyone involved, creating even more economic burden on businesses and consumers alike. HVCC is creating significantly increased costs for home buyers and sellers, has equally and negatively affected the income base of thousands of appraisers (business entities) across our nation, and, at the same time, is "padding the pockets" of AMCs. We are all aware of what happens when businesses show deflated profits...consumers make up for it! 

In addition, while many of us have heard that "real estate is local", certain restrictions regarding HVCC and "middle man" interference can cause [bogus] inflated values of home prices in certain areas (markets), and could possibly be devaluing prices of homes in your own neighborhood...even YOUR own home! This can definitely happen when AMCs hire (commission) appraisers located in one region of the country to offer valuations (opinions) of properties that are located in totally unfamiliar markets. Doesn't it make sense, that it's usually best to hire real estate professionals who are legitimately and directly familiar with current market conditions in, or around, your area?

Could it be possible that those responsible for recent changes in the appraisal environment are trying to level out home values across the nation, in order to do away with differing market bases? Hmmm! As real estate professionals, we may be called upon to voice our opinions relating to the subject of the moratorium that H.R. 3044 proposes, as well as the future of the home valuation process. Please be ready to offer your support when, where and how you can! The future of homeownership depends on us!

Enjoy your day!