HVCC Causing Concern and Foreclosures Impacting Renters

The mortgage and home valuation arena is in flux still as folks continue to discover the negative impacts of the recently enacted Home Valuation Code of Conduct amid tighter lending guidelines. Some of the unintended consequences of the HVCC are longer turn times for appraisals and suspect valuations from appraisers not familiar with local neighborhoods as underwriters are increasingly turn to appraisal management companies. There is a movement gaining steam to place a moratorium on the HVCC through HR 3044sponsored by Representative Travis Childers of Mississippi and supported by NAR.

The Human Rights and Fair Housing Commission reported that it is receiving many calls regarding renters in defaulted or foreclosed homes. There is quite a bit of confusion about renters’ rights in foreclosed properties. And with foreclosures continuing it is a growing problem. The Protecting Tenants at Foreclosure Act of 2009 provides that leases survive a foreclosure — meaning the tenant could stay at least until the end of the lease, and that month-to-month tenants would be entitled to 90 days’ notice before having to move out. Many renters and lenders alike are apparently still figuring this one out.

In other mortgage news, the Sacramento Housing and Redevelopment Agency announced that it has funding available in its Target Area Homebuyer Program. There is some concern that the State’s budget woes may mean the programs are not refunded. The SAR Real Estate Finance Forum meets once a month at 9:00 am on the first Thursday in the Mack Powell Auditorium at the SAR building on Howe Avenue Sacramento. The next meeting is scheduled for 9:00 on September 4, 2009.