By Patrick Egger, owner/principal
Area Real Estate Advisory Services
Illustration: Dennis Wunsch
Newly required appraisal form adds another
wrinkle to an already-controversial side
of the loan process
Following the implementation of the Home Valuation Code of Conduct (HVCC)
this past May, mortgage brokers found themselves effectively removed from
the appraisal loop for loans to be backed by Fannie Mae and Freddie Mac.
But while the National Association of Mortgage Brokers and others were busy
protesting the HVCC, another change slipped into mainstream underwriting
procedures virtually unnoticed.
In fact, the newly required 1004MC Market Conditions Addendum to the
Appraisal Report could bring with it problems for those financing in the current
market environment. Here’s what it is — and why it’s worth knowing about.