Starting tomorrow, May 1st 2009 the new rulings entitled the HVCC – Home Valuation Code of Conduct come into force.

However with many confusing rumors and negativity floating about on the web about how the new rulings will effect the real estate and mortgage process at the moment will be changing, let us take some time to explain how it will effect you:

The HVCC is designed to help protect consumers from any relationship between a lender or mortgage broker and a specific appraiser. It does not forbid independent appraisers to be used, but just limits how they interact with the mortgage broker or lender. This means, in theory, that the consumer can be assured that the appraiser is acting in the best interests of the consumer in returning a fair market value for a property.

To avoid the HVCC becoming meaningless there are several safeguards in place, for instance Freddie Mac (FHLMC) will not purchase any loans from sellers who do not adopt the code. The news on how Fannie Mae will handle the Home Valuation Code of Conduct has not been announced yet. To ensure that the code is enforced and the quality of appraisals is upheld there is to be the formation of a regulatory body named the Independent Valuation Protection Institute (IVPI).

It has been said by some that the rulings will mean higher costs for the consumer as well as leaving many brokers unprepared. What is sure is the the next few months as the rules start to really take effect will be interesting.

If you have decided that you would like to own a home in Sedona as a full time resident or part time then contact Claudia Ault and her team in downtown Sedona.

For a complimentary search of the Sedona MLS and access to all property currently on the market in Sedona AZ, visit www.claudiaault.com. For the best in Sedona Real Estate service and knowledge, contact Claudia Ault at 928-301-3016.

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