Heads up: Home appraisals are about to drastically change

The one held recently at the White House looked canned, but, hey, it's now fashionable to have a "teachable moment." So maybe a "Beer Summit" might take the edge off the growing protests if the big boys sat down with the real estate and mortgage industry professionals and passed around the brew. I'm only here to help. ~ MikiDear Miki:Recent changes to federal appraisal guidelines known as the Home Valuation Code of Conduct, or HVCC, now require all appraisals for conventional loans to be ordered through Appraisal Management Companies, or AMCs, as opposed to being ordered directly by your mortgage company. This was designed to protect consumers and banks against grossly inflated appraised values by prohibiting loan officers from coercing appraisers. Although these regulations were well intentioned, they have had the unintended consequence of depressing property values further and increasing costs to the consumer and decreasing the quality of the paid appraisals. AMCs are unregulated and appraisers are chosen at random, so there is no control over the quality of the appraiser. This is creating some pretty severe problems for homebuyers and homeowners alike. I have heard dozens of horror stories from my Realtors and other mortgage professionals.Those wishing to sign the petition to repeal HVCC can do so by going to petitiononline.com/hvcc/petition.html.It states:"To: New York Attorney General, Freddie Mac, Fannie Mae and the Office of Federal Housing Enterprise Oversight,"The Home Valuation Code of Conduct (HVCC) stands to be an important step forward for consumers and the real estate industry, but in its current form there are some important changes that require your attention. "In its current form, consumers have a great deal at stake as HVCC will not only require consumers to buy a new appraisal if they decide to change brokers or lenders, but will have to pay for longer rate locks as HVCC will extend the time it takes to close mortgage loans and deprive mortgage brokers and agents of the control that is fundamental in closing mortgage loans efficiently. Ultimately, this means costs are increased for consumers and there is less incentive for consumers to exercise their right to shop for the best deal when acquiring a mortgage as doing so requires purchasing an entirely new appraisal. "The HVCC is also discriminatory against mortgage brokers, appraisers, and real estate agents. The HVCC stands to eliminate independent appraisers overnight by requiring them to join Appraisal Management Companies (AMCs) in order to continue doing business. After joining an AMC, an appraiser will be disgorged of 40 percent or more of their income as a fee required by AMCs. This not only means the end of the independent appraisers as we know them, but means that virtually half of appraiser's incomes will be shifted to unregulated entities, AMCs. "HVCC has great potential, but only if careful consideration is given to the existing flaws that will only serve to hurt consumers, brokers, agents, and appraisers. We humbly ask for your help in helping HVCC live up to its true potential. Thank you." ~ Folsom Real Estate Broker Dear F.R.E.B.:I've received event another signature petition request to go to hvccpetition.com. This petition expounds on the "ruinous personal impact HVCC has had on consumers and industry professionals and will be delivered to New York Attorney General Andrew Cuomo, Housing Finance Agency Director James B. Lockhart and the House Financial Services Subcommittee."So how should the value of a residence be determined? Well for older homes, I'm thinking the "Antiques Road Show" would be a reliable source.Real estate agent Miki Garcia can be reached at askmikigarcia@yahoo.com.