FHA Implements Their Version Of HVCC

"As indicated in the industry email of December 22, 2009, enactment of ML 2009-28 (Appraiser Independence) WILL be implemented February 15, 2010. ML 2009-28 (originally planned for a January 1, 2010 implementation) has two parts: a) prohibition of mortgage brokers and commission-based lender staff from the appraisal process, and b) appraiser selection in FHA Connection.  The effective date for both sections of this guidance will take effect for all case numbers assigned on or after February 15, 2010.  This extension has allowed FHA and lenders additional time to adjust systems to accommodate the changes." 

As seen with the enactment of the FNMA version of HVCC, HUD's action will further restrict the ability of your lender to select an appraiser they feel has the experience and knowledge to accurately determine values in your market area.   As you know HVCC, Home Valuation Code Of Conduct, was enacted after a settlement reached between Fannie Mae and Freddie Mac with Attorney General Cuomo of New York.