HVCC – Knowing the Basics of the New Home Appraisal System

Home valuation is the process of evaluating the market value of the property for sale through assessments made by professional home appraisers or property surveyors. Home appraisal is basically a very essential component in the process of home mortgage because it is the basis of the amount to be approved by the lending company or book.  If you apply for mortgage loan, the bank or lender will not immediately approve your application. Important concerns must be considered including the home appraisal and the result of the assessment of the worth of property you wish to acquire. With the implementation of the new federal law on home appraisals known as Home Valuation code of conduct or HVCC, a brand new shift in the mortgage process was initialized.

What exactly is HVCC?

HVCC is a federal law that provides basic guidelines on the new process concerning home valuation or appraisals. In the new law, any professionals that have financial connection with the bank or loan officials can no longer order or appoint their own appraisers to do the property valuation. The creation of HVCC originated from a complaint with the appraisal process done in assessing the worth or market value of a particular property. The federal government provides this regulation in order to ensure the impartiality, independence and accuracy of the appraisal being performed.

With HVCC, all appraisers are licensed and provided by a single certified appraisal management company. No other appraisers are given the right to appraise or evaluate any real estate property, those who still do will not be honored and recognized by the bank or lending company. The efforts of the government through HVCC aim to improve the standard and credibility of the appraisal system in giving a fair and accurate home valuation.

What are the effects of HVCC?

The new home valuation code of conduct, despite its noble objectives and basis for creation still has certain loopholes and setbacks recognized by mortgage providers and lenders. The approval of the mortgage application certainly takes longer to be approved with the implementation of the new appraisal system. The time consuming effects brought a lot of buzz among lenders and borrowers who are directly affected by HVCC rules and regulations. In terms of the appraisers especially those who are not employed or associated with the certified appraisal management company, unemployment is definitely imminent. Others who find it hard to be hired for their services opted to change careers and shift to a different profession. However, there are also good points in the implementation of HVCC especially in providing opportunities to professionals who are experts in the field of home appraisal. As long as they are connected with appraisal management companies licensed by the government, career advancement is certainly guaranteed.

Home valuation code of conduct or HVCC is another of the many support provided by the federal government to those who wish to acquire a house of their own. Following the right procedure in searching for financial assistance like mortgage will definitely pave the way to the realization of every aspiring home owner’s dreams.