Brittex Blog

There are new requirements for appraisers completing appraisals for clients who intend to sell their loans to Fannie Mae or Freddie Mac. 

It is called HVCC or the Home Valuation Code of Conduct.

The form 1040MC is designed for appraisers to comment on market conditions (MC) regarding the appraisal.  It is a requirement as of April 1, 2009.  Other portions of the HVCC requirements go into effect on May 1st, 2009. See a sample of the 1040MC by clicking the link below.

As of May 1, 2009 appraisers will be adding this 1004MC form to their appraisal reports for Fannie and Freddie reports.

Effective April 1, 2009, a new ordinance by Miami-Dade County requires lenders to obtain inspections for foreclosed properties and the issuance of certificates of use, prior to accepting offers.

Flavio Gomez, P.E., Building Division Director, Miami-Dade Building Department, spoke to the American Society of Appraisers (ASA) South Dade Chapter on code compliance at John Martin’s in Coral Gables last week. The meeting was hosted by Chapter President, Phillip G. Spool, ASA.

“Certificates of use” must be obtained for these properties, and any violations under the Miami-Dade Building Code run with the property, according to Mr. Gomez.

Broker's representing lenders must file an inspection report with the county, including the estimated "cost to cure" defects and bring the home or condominium into compliance with building and zoning regulations. The county will issue a "certificate of use" and without the certificate, they cannot accept offers on REO's.

Banks are not required to fix code violations; however, buyers who are alerted to the deficiencies will need to repair them. It could reduce, and/or delay the sale of homes and condominiums in the open market, thus, extending the absorption time for the supply of 56,000 foreclosure cases filed in 2008. Absorption is what is needed to reach market stabilization and once REO and short sales are absorbed by the market, stabilization will occur.

If you have any questions about this, please contact Britt J. Rosen at 305 663-7334 x107.

Also, Architect Carlos Bravo can be reached at (305) 412-9499 http://www.vertexarchitecture.com/