Fill Out Your Appraisal Hvcc Form

What is the Appraisal HVCC form?

The Appraisal HVCC form is a certification document used by lenders to confirm that an appraisal has been completed according to the Home Valuation Code of Conduct (HVCC) standards. It outlines the processes followed in selecting the appraiser, ensures compliance with regulations, and asserts that the appraisal was not influenced by outside parties.

Who needs to fill out the Appraisal HVCC form?

The lender is responsible for filling out the Appraisal HVCC form. This includes presenting accurate information regarding the appraisal and confirming its adherence to the HVCC requirements.

What information is included in the Appraisal HVCC form?

The form contains essential details such as the borrower's name, loan number, property address, appraisal date, and a certification statement regarding the selection of the appraiser. It also lists the restrictions on communication between the appraiser and loan production staff to prevent undue influence on the appraisal's findings.

What are the restrictions on communication with the appraiser?

Direct communication between the appraiser and the loan production staff is prohibited by the lender. Instead, any necessary communication must go through the lender's quality control staff. The requirement is designed to uphold the integrity of the appraisal process and ensure compliance with the HVCC.

What prohibited information should not be provided to the appraiser?

The lender cannot provide the appraiser with details that might influence the appraisal, including the owner's estimate of value, a target value, the purchase price, the loan amount, comparable sales, or the loan-to-value ratio, unless as part of a valid and complete executed purchase contract.

How does the lender verify the appraiser's qualifications?

The lender certifies the appraiser's qualifications by verifying their licensing or certification status through the Appraisal Subcommittee (ASC) website. This ensures that the appraiser meets the necessary professional standards required for the appraisal process.

What is the significance of the exclusionary list?

The exclusionary list includes individuals who are disqualified from performing appraisals due to prior misconduct or unethical behavior. The lender certifies that the chosen appraiser does not appear on the FNMA/FHLMA exclusionary list, which is a crucial step in maintaining credibility in the appraisal process.

Is the lender allowed to influence the appraisal outcome?

No, the lender cannot condition payment for appraisal services on the appraised value or any opinions expressed in the appraisal. The lender must remain objective and ensure that the appraisal reflects an unbiased opinion of the property's market value.

What role does the authorized signature play in the Appraisal HVCC form?

The authorized signature on the Appraisal HVCC form serves as a certification by the lender that the appraisal meets HVCC requirements. It indicates that the lender takes responsibility for ensuring compliance with appraisal standards and recognizes the importance of impartiality in the appraisal process.

Filling out the Appraisal HVCC form can be a simple task, but mistakes can lead to delays or complications in the appraisal process. Here are some common errors that individuals often make.

One frequent mistake is providing inaccurate or incomplete borrower information. When the form asks for the borrower’s name, it is crucial to include the full and correct name as it appears on official documents. Missing or misspelled names can lead to confusion, impacting the appraisal and potentially delaying the loan approval. Always double-check this section before submitting.

Another area where problems can arise is understanding the concept of undue influence and failing to recognize what information can and cannot be shared with the appraiser. Some people mistakenly believe that providing additional data, such as comparable sales or a target value, will help the appraiser. In reality, sharing this kind of information contravenes the guidelines of the HVCC and can undermine the integrity of the appraisal process. It’s essential to limit the information provided to only what is necessary under regulations.

Additionally, individuals often overlook the importance of the appraisal date and property address accuracy. Missing a detail such as the property address can create complications that may require a new appraisal process. Lenders need precise information to avoid issues with compliance and record-keeping. Taking a moment to verify this information saves everyone involved time and money.

Finally, a widespread mistake involves not verifying the appraiser's qualifications. The form requires the lender to confirm that the appraiser holds the appropriate license and does not appear on any exclusion lists. Failing to conduct this verification could lead to the use of an appraiser who does not meet necessary standards, which can complicate the entire loan process. Make it a point to ensure these details are checked and certified on the form.

The Appraisal HVCC form is an essential document utilized in the home loan process to ensure compliance with the Home Valuation Code of Conduct (HVCC). Several other forms and documents typically accompany this appraisal certification to provide necessary information and maintain transparency throughout the appraisal process. The following list outlines some of these documents.

• Appraisal Report: This detailed report includes the appraiser’s findings and conclusions regarding the property’s value, based on factors such as condition, location, and comparable sales.
• Loan Estimate: A standardized document provided to borrowers that outlines the terms of the loan, including estimated monthly payments, interest rates, and closing costs.
• Purchase Agreement: A legally binding document between the buyer and seller outlining the sale terms, including purchase price and any contingencies.
• Title Report: This document provides information about the property's ownership history, liens, and any encumbrances that may impact the transaction.
• Property Disclosure Statement: A form filled out by the seller detailing known issues or defects with the property, offering transparency to potential buyers.
• Credit Report Authorization: This form allows lenders to obtain the borrower’s credit report to assess their creditworthiness before approving a loan.
• Income Verification Documents: Copies of pay stubs, tax returns, or bank statements submitted by the borrower to prove their income and ability to repay the loan.
• Inspection Report: An assessment conducted by a professional inspector, detailing the condition of the home and any necessary repairs.
• Appraiser's Qualifications: Documentation that verifies the appraiser's license, experience, and any potential conflicts of interest related to the appraisal.
• Compliance Certificate: A document certifying that the appraisal adhered to all applicable regulations and guidelines, including the HVCC.

These forms and documents are crucial in facilitating a smooth transaction while ensuring compliance with regulatory standards. Each piece of documentation contributes to the overall integrity of the appraisal process and protects the interests of all parties involved.

• Inspection Report: Similar to the Appraisal HVCC form, an Inspection Report outlines the condition and features of a property. It is typically completed by a qualified inspector and includes details that might influence the property’s value. Both documents aim to ensure transparency and accuracy regarding a property’s status before a transaction.

• Purchase Agreement: The Purchase Agreement serves as a binding contract detailing the terms of a property sale. Like the HVCC form, this document requires accurate information about the property and outlines the responsibilities of buyers and sellers. Both aim to ensure that necessary conditions are met during the transaction process.

• Loan Application: The Loan Application provides crucial information about the borrower and the property in question. Similar to the HVCC form’s requirement for transparency, the Loan Application seeks to ensure the lender is informed about all relevant aspects before approving a loan.

• Title Report: The Title Report details the legal description of the property and any liens or encumbrances associated with it. Like the HVCC form, it aims to confirm that the property is free of any issues that could affect its ownership or value. Transparency is key in both reports.

• Property Disclosure Statement: This document, typically provided by sellers, discloses any known issues with the property. It is akin to the HVCC form in its emphasis on honesty and transparency in property transactions, ensuring all parties are aware of potential concerns that might impact the appraisal or sale.

When filling out the Appraisal HVCC form, attention to detail is crucial. Here are ten essential dos and don'ts to keep in mind:

• Do accurately verify the borrower’s name and loan number.
• Do ensure the property address is correct, including city, state, and zip code.
• Do confirm the appraisal date to reflect the most recent evaluation.
• Do follow the lender’s criteria when selecting an appraiser to maintain compliance.
• Do report any direct communication attempts between the appraiser and loan production staff to the lender’s QC staff.

• Do not share information that might influence the appraisal value or opinion, such as owner estimates or the target value.
• Do not mention the purchase price outside of a valid and complete executed purchase contract.
• Do not provide the loan amount that is not part of a valid contract.
• Do not send comparable sales with the initial order for the appraisal.
• Do not allow any influence from the lender that might compromise the appraisal process.

Misconceptions about the Appraisal HVCC form can lead to confusion. Here are five common misconceptions and clarifications to help you better understand this important document.

• The HVCC form guarantees a specific appraisal value. Many believe that submitting this form will automatically result in a certain appraised value. In reality, the form simply certifies compliance with the Home Valuation Code of Conduct and does not influence the value itself.
• All communication between the lender and appraiser is prohibited. While the form restricts direct communication regarding the appraisal, it does not completely eliminate all forms of communication. Proper channels exist for necessary discussions, especially those concerning compliance and quality assurance.
• The appraiser can receive information about comparable sales. Some think that sharing data on comparable sales can guide the appraiser's estimation. However, the HVCC strictly forbids this practice to maintain independence in the appraisal process.
• The lender controls the appraisal outcome. A prevailing misconception is that lenders can dictate the results of an appraisal. The HVCC is designed to protect against this by ensuring that the appraisal process remains unbiased and independent.
• Appraisers never report any communication with the lender. It’s a common belief that appraisers simply carry out their work without any oversight. On the contrary, the HVCC requires appraisers to report any direct communication with the loan production staff to the lender’s quality control team.

Understanding these misconceptions allows homeowners, buyers, and industry professionals to navigate the appraisal process with clarity and confidence.

• Understand the Purpose: The Appraisal HVCC form is used to certify that the attached appraisal complies with certain standards and regulations.
• Complete Information: Fill out the form with accurate borrower information, including borrower name, loan number, and property address.
• Appraiser Selection: The lender selects the appraiser based on qualifications, proximity, and other relevant factors.
• Communication Restrictions: Direct communication between the appraiser and loan production staff is prohibited. This helps prevent undue influence on the appraisal process.
• Compliance Assurance: The lender confirms that all communications with the appraiser comply with the Home Valuation Code of Conduct (HVCC).
• Avoid Prohibited Data: Information that could influence the appraisal, such as target values or purchase prices, should not be provided outside of a valid purchase contract.
• Comparable Sales Limitations: Comparable sales information cannot be included in the initial appraisal order.
• Payment Conditions: The lender may not condition payment or future engagements based on the appraisal value or opinions expressed.
• Verification of Appraiser: The lender must verify the appraiser's license status through ASC.gov and ensure they are not on exclusion lists.
• Authorized Signature: The form must be signed by an authorized individual who certifies that the appraisal meets HVCC requirements.