The Real Deal Miami

What do new appraisal rules mean?

October 29, 2010 11:15AM

On Oct. 18, the Federal Reserve released an interim rule in response to
the controversial Home Valuation Code of Conduct. Under the HVCC,
appraisals are ordered to be at arm’s length, often through a national
management company. Mortgage brokers, then, are unable to hire
appraisers with whom they are familiar to close deals, and communication
between agents and appraisers is discouraged. The rule also requires
that appraisers be paid at a rate that is reasonable and customary in
the market where the property is located. [Sun