HVCC is here.

Conventional mortgage loans - those originated per Fannie Mae and Freddie Mac guidelines - are about to get a little more complicated. As if the tighter lending guidelines, increased credit score requirements, and program restrictions were not enough, along comes HVCC, which stands for Home Valuation Code of Conduct.

You can send your thank you notes to NY Attorney General Andrew Cuomo, who was instrumental in getting HVCC passed.

The purpose of HVCC is to provide a separation of the appraisal process between the lender and the independent appraiser. Lenders, or other related parties in a real estate transaction, such as the real estate agent, are no longer allowed to have contact with the valuation process. There are good intentions with this concept, but there are also potential problems. Click here to read about them.

The primary objective is to prevent fraud by eliminating coercion between the appraisers and mortgage lenders to "hit the number" and "make a deal work". Effective May 1, 2009, mortgage lenders are required to use an appraisal ordering process, free of any influence from anyone related to the production side of the mortgage process, to assign the appraisal. Most lenders, fearful of appearing to not have the proper separation in the process, are contracting with appraisal management companies to oversee the process.

It is unfortunate that so many of the sweeping changes our industry has experienced in the past year has been caused by the actions of those with fraudlent intentions. My concern is we may lose our best and most trusted appraisers because of increased work loads, higher expectations, while receiving a lower compensation. click here to read more from an appraisers prespective.

Like a DVR, I wish I could fast forward through this mess, rid the system of people looking for the easy buck, then make it more difficult for the "evil ones" to jump back in the business when the smoke clears from this mortgage crisis.

My message to my co-workers, fellow ethical competitors, and trusted real estate appraisers: (As the auto industry is advertising) Let's put the rally caps on, buckle down, and weather the storm.

It's a great time to buy a home. Contact your favorite Realtor and buy one today!