On May 1, 2009
the HVCC was initiated throughout the Country on every
mortgage transaction that involves an appraisal that is
sold to Fannie Mae and Freddie Mac. This involves all
conventional loans which prior to the present meltdown
was approximately 70% of all lending. With the banking
system crippled, conventional loans seized up and nearly
came to a halt. Presently, the conventional mortgage
market is still trying to get back on its feet albeit
very slowly and cautiously. Then there is the HVCC.
The HVCC came about due to pressure put on an appraisal
management company called eAppraiseIT by a large
mortgage lender Washington Mutual in the State of New
York. The Attorney General of New York created the HVCC.
To stay out of litigation (even though not directly
involved), the appellant in the case (The State of New
York) arranged to have Fannie Mae (FNMA) sign an
agreement that all loans placed through FNMA & Freddie
Mac would have to adhere to this new HVCC.
“We knew this was causing extreme hardship to the
industry, but we didn’t expect to get thousands of
horror stories from would-be homebuyers whose dreams
have been dashed by this well-intended, but misguided
policy. Every day thousands of people are getting the
rug yanked out from under them in their quest to become
homeowners because of HVCC. You only need to go to our
petition website to read the stories for yourself,” said
Kearns.
