Mortgage controversy: Lenders against home valuation code

RICHMOND, VA (WWBT) - Life is tough in the housing market and this week a group of local realtors have an idea that they say could make life easier for home buyers and sellers.

They are calling for an 18-month moratorium on the "home valuation code of conduct" that requires lenders responsible for hiring appraisers, but then limits their participation in the appraisal process.

Ian Coates from First Colonial Appraisals joined NBC12 to discuss this issue.

Q: This is a pretty in depth topic for real estate professionals, but has an impact on anyone who may be considering buying a home. This HVCC was put in place for a reason. To reduce the opportunity for appraisers to be influenced and mortgage fraud to occur. Could it be dangerous to lift this provision, even for a short period of time?

Q: How in your view is this practice hurting average home sellers and buyers?

Q: Who makes the decision to put the mormoratorium place?

Q: And you are gathering real estate professionals in Richmond Wednesday to discuss this issue, give us the details.

See the video at right for full details.

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