Housing Wire reports that Rep. Gary Miller (R) of California’s bill to sunset the HVCC in HR 3126 passed the House Financial Services Committee this week. Several industry associations have quietly confirmed to me that the Home Valuation Code of Conduct (HVCC) will soon be dead. The HVCC under HR 3126 sunsets through the Consumer Financial Protection Agency (CFPA). Many observers believe the sunsetting of the HVCC under the CFPA is instrumental in getting the CFPA passed in congress.
The CFPA bill passed the House Financial Services Committee by a vote of 39 to 29 which was a major victory for Rep. Barney Frank (D). Many observers believe the HVCC will still be quickly phased out even if the CFPA doesn’t win as congress is quickly growing weary of the consumer and industry complaints about some Appraisal Management Companies (AMC). Consumers, local taxing bodies, and some in the real estate industry point to increased appraisal fees and unqualified appraisers from distant states appraising local property with unsubstantiated valuations which they believe is further deteriorating the real estate markets across the United States.