HVCC Update!

On October 22, 2009, HR 3126, the “Consumer Financial Protection Act of 2009,” passed the House Financial Services Committee with an amendment that will ultimately sunset the Home Valuation Code of Conduct (HVCC). The amendment was offered by Representative Gary Miller (D-CA). During the debate Mr. Miller and Capital Markets Subcommittee Chair, Paul Kanjorski (R-PA), agreed to work on the amendment language before floor consideration to include the appraisal language from HR 1728, the “Mortgage Reform and Anti-Predatory Lending Act.” The amendment requires the new Consumer Financial Protection Agency to promulgate and appraisal independence rule within 60 days of enactment of HR 3126. Upon the effective date of the appraisal independence rule the HVCC will sunset.

NAR has been active in calling for a moratorium to address the unintended consequences of HVCC and its implementation. In June, NAR reiterated calls for a moratorium on HVCC in a letter to New York Attorney General Cuomo and Federal Housing Finance Agency (FHFA) Director James Lockhart. NAR President Charles McMillan followed up the letter in meetings with the New York Attorney General’s office, FHFA Director Lockhart, and Fannie Mae. NAR also supported HR 3044, which would impose an 18-month moratorium on HVCC.