CNC Mortgage Blog

One of the biggest concerns we had as brokers with the new Home Valuation Code of Conduct (HVCC) has come to haunt us. In the last weeks several lenders have announced that they will not accept appraisals done for other banks to be used with their system. The main implication is that if a borrower has paid for and appraisal and is denied a loan at one bank or might benefit at another bank, that appraisal that cost them close to $400 cannot be used at another bank.

The new government regulations put into effect this year have been designed to put distance between mortgage brokers and appraisers. The banks have several Appraisal Management Companies (AMCs) who in turn have several appraisers. The bank randomly assigns the appraisal to an AMC who in turn randomly assigns an appraisal to an appraiser.

Before the HVCC the appraisal was made for the mortgage broker who could reassign the appraisal to any of the banks we worked with. Now the banks order the appraisal but many banks won’t accept the appraisal if it is transferred from another bank; even if it is certified to conform with HVCC rules.

So, the customer has to spend another $400??