HVCC's Sunset and Other Appraisal Reforms on the Horizon

An interesting read from K&L Gates, LLP:

HVCC's Sunset and Other Appraisal Reforms on the Horizon

Congress is poised to eliminate the contentious Home Valuation Code of Conduct, (the “HVCC”), and with the HVCC set to sunset, more expansive (and expensive) appraisal reforms are on the horizon.

Tucked within the massive Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) are provisions that will strengthen appraiser independence and enforcement, regulate the use of broker price opinions (“BPOs”), set standards for pricing of appraisals and appraiser valuation model products (“AVMs”), and subject appraisal management companies (“AMCs”) to potential federal and state oversight.

While the HVCC may be fading into the sunset, don’t expect the same fate for AMCs, AVMs, and BPOs.

To view the complete alert online, click here.