FHA delays HVCC for Santa Clara County Home Loans until February 15, 2010. This was originally planned for a January 1, 2010 implementation. But, FHA announced today that the enactment of Appraiser Independence has been delayed.
Since implementation of the Home Valuation Code of Conduct (HVCC) for conventional loans in May 2009, many challenges and difficulties with appraisals have been reported, such as low appraisals, inexperienced appraisers, out-of-area appraisers unfamiliar with a local neighborhood, and problems with Appraisal Management Companies (AMCs). On the lines of HVCC, the FHA policy prohibits mortgage brokers and commission-based lender staff from the ordering the appraisal or communicating directly with the appraiser at any stage during the transaction.
Santa Clara county first time home buyers who are planning to avail of FHA home loan would definitely welcome this move. If you are a First Time Home Buyer in Santa Clara looking for an FHA purchase loan you may like to start the process before February 15th to avoid getting into the HVCC hassle. Email me at Shashank (at) arcuslending.com to find out what are the loan requirements for an FHA Loan in Bay Area.
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