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The Home Valuation Code of Conduct, HVCC, a government guideline on appraisal ordering went into effect on May 1, 2009. In a nutshell, all appraisal ordering must originate from the lending banks instead of the Mortgage Brokers. The intent of this new guideline is to stop Mortgage Brokers from influencing the appraiser on the value of properties. The HVCC will be in effect for 18 months.

REPERCUSSIONS OF THE HVCC:
1. Appraisal values are lower and more convervative.
2. Loan files cannot be transferred from one lender to another without ordering a new appraisal from the new lender.
3. Mortgage brokers and banks are canceling many loans due to low values on the subject properties.
4. HVCC is not good for borrowers, banks or mortgage brokers.