The National Association of REALTORS® annual convention is coming to an end today in San Diego. At a risk-management and regulatory issues forum on Friday the Home Valuation Code of Conduct was a topic of conversation. Alfred Pollard, General Counsel for the Federal Housing Finance Agency said the Home Valuation Code of Conduct is accused by many real estate professionals of resulting in an increase of inaccurate appraisals.
The Federal Housing Finance Agency was created to oversee Fannie Mae and Freddie Mac following the housing debacle of 2008 and in a settlement with the New York Attorney General. The Federal Housing and Finance agency has oversight responsibility to ensure that the Code of Conduct is followed. The legislation expires in late 2010 but Fannie and Freddie can continue adopting a potion or all of the requirements of the Home Valuation Code of Conduct.
One item discussed was the distance appraisers are traveling, sometimes taking them out of the area with which they are most familiar.
Steve White of Keller Williams Realty in Santa Clarita California and chair of NAR’s Risk Management Committee has the money quote;
…real estate professionals are losing deals because valuations are coming in far below the price agreed upon by the buyer and seller and that the process for getting valuations reconsidered doesn’t work.
Valuations are taking so long that there is no time to get them reconsidered before the deal collapses. What’s more, when real estate professionals try to share comparables or familiarize out-of area appraisers with unique market issues, appraisers say they can’t talk to them.
You can read the complete blog post by Robert Freedman, Senior Editor, REALTOR® Magazine here.
Don Grafues
Resource: Speaking Of Real Estate blog at realtor.org
Resource: Speaking Of Real Estate blog at realtor.org
