Two Congressmen have introduced legislation that would place an 18-month moratorium on the Home Mortgage Valuation Code of Conduct (HVCC), a Fannie Mae/Freddie Mac edict that among other things bans loan brokers and loan officers from directly ordering appraisals.
The bill specifically directs the Federal Housing Finance Agency to suspend the HVCC that went into effect May 1 for 18 months. The National Association of Mortgage Brokers (NAMB) claims the HVCC is delaying closings and costing it business. Brokers also have complained about being forced to pay high fees to appraisal management companies.
"This ill-thought out code is basically damaging the economy. It will rob consumers of the low rates that are available now," said NAMB executive director Roy DeLoach. However, it's unclear where the bill goes from here. The legislation was introduced on Thursday night by Rep. Travis Childers, D., Miss., and Rep. Gary Miller, R., Calif.