*** Breaking News on the HVCC ***

[Steve Smith]

The House Financial Services Committee has just passed an amendment to the Consumer Financial Protection Agency Act to sunset the HVCC. This amendment was offered by Rep. Gary Miller (R-CA) who introduced legislation earlier this year for an 18 month moratorium on the HVCC, along with 112 cosponsors. Miller wants regulators to come up with one set of standards to oversee the industry.

See original article @ http://www.cnbc.com/id/33431712

It looks like this is even more profound than HR 3044

[Cynthia]

Oh Be Still My Beating Heart! don't tease me . . . .

"The Committee also passed a Bachmann amendment that would direct the Consumer Financial Protection Agency to promulgate new rules on appraisal independence requirements within 60 days of the bill’s enactment and would sunset the Home Valuation Code of Conduct (HVCC) at that time.

“At a time when our housing markets are still fragile, the last thing our nation needs is another misinformed government policy that is going to raise costs on potential homebuyers. Rather, we should reexamine this issue and establish a more appropriate policy,” said Bachmann.

The HVCC was born out of a lawsuit pursued by New York Attorney General Andrew Cuomo to cease coercive behavior amongst lenders, brokers, appraisers and others in the home valuation process. However, it skipped important steps in the public rulemaking process and could have dire effects for small businesses and homebuyers in Minnesota. Under the HVCC, lenders will only accept appraisal reports from a pre-approved list of appraisers, most of which are approved through appraisal management companies"

[Lucia Goheen]

A line in the bill allows anyone with an interest in the purchase transaction to approach the appraiser about the appraisal. Doesn't that violate the confidentiality rule between the appraiser and the client?