Austin Realtor Online Edition - Austin Board of REALTORS®

August 2009

Chairman’s Corner

Dear Member,

Since taking effect on May 1, the Home Valuation Code of Conduct (HVCC) has been a source of considerable concern among our members, both sales professionals and appraisers. The new rules were forged in an agreement between the New York State Attorney General and the two secondary mortgage market companies, Fannie Mae and Freddie Mac. The two companies’ federal regulator, the Federal Housing Finance Agency (FHFA), weighed in on the agreement, too.

By now the main concern is widely known: the rules create a hard firewall between those who underwrite loans and those who hire appraisers. So, many lenders, even though they can hire appraisers themselves if they put appropriate safeguards in place, are choosing to work with appraisal management companies (AMCs) to select appraisers.

The HVCC establishes standards for solicitation, selection, compensation, conflicts of interest and appraiser independence for any mortgage that will be sold to Fannie Mae or Freddie Mac. Federal Housing Administration (FHA) and Federal Home Loan Bank (FHLB) mortgages are not covered in the agreement.

How HVCC Affects the Appraisal Process

REALTORS® and mortgage brokers are prohibited from selecting appraisers. Lenders may use “in house” staff appraisers to conduct appraisals. However, the loan production staff is prohibited from:

Selecting, retaining, recommending or influencing the selection of an appraiser; and

Conducting any substantive conversation with an appraiser or appraisal management company regarding the appraisal assignment.

For the consumer, the appraisal process has remained largely intact. However, consumers may find the process takes longer than and may be more costly than it has been in the past.

For more Information on HVCC, consult the following Web sites:

NAR HVCC State Action Info Pack

NAR Research: The Impact of HVCC

NAR's HVCC FAQs

NAR's HVCC Myths and Facts Flyer

Complete Home Valuation Code of Conduct

Jay Gohil
2009 Chairman of the Board

Don’t Delay – Pay Your MLS Fees Today

Secure your MLS service by submitting your participation fees by Tuesday, September 15. Your ACTRIS subscription provides you with access to one of the nation’s finest MLS systems, along with quality support and a variety of MLS-related tools, services and products that simplify your job and bolster your client care.

For your convenience, ABoR offers several ways to pay your MLS fees: online through the “My Account” section of Abor.com; by mailing a check to the Austin Board of REALTORS®, 10900 Stonelake Blvd., Ste. 100, Austin, Texas 78759; or in person at the ABoR office. For questions or concerns regarding your MLS participation fees, contact the Membership Department at 512/454-7636.

Protect Your Industry and Your Pocketbook

How would you like to win a full year of free ABoR dues and ACTRIS participation fees? Invest $99 or more in the Texas Real Estate Political Action Committee (TREPAC) by the close of the 2009 fiscal year and you could win a year’s worth of Association dues. Members who invest $1,000 or more will receive 10 raffle entries. The winner will be selected on Wednesday, October 7, at Realty Round Up.

Fresh on the heels of a successful Texas Legislative session, TREPAC needs your help to continue providing timely and effective protection against legislation harmful to real estate professionals and private property owners. Invest online at Abor.com or contact the Government Affairs Department at 512/454-7636.

ABoR Delivers with Revamped Publication Schedule

In response to member feedback, ABoR will update its publication schedule for 2010. Rest assured that you will still receive the timely, enlightening information you have come to rely on from your Association.

Our print publication, Austin REALTOR®, will be published six times per year, while our digital newsletter, Austin REALTOR® Online, will continue to arrive in your inbox each month. In this month’s e-mail you will find both the legal topics column and the stats package; in 2010 these columns will be distributed each month through our digital publications. You may also peruse archived Legal Topics articles and statistical reports on Abor.com.

As we transition to a more dynamic method of getting you the information needed to succeed in the real estate industry, please take a moment to ensure your contact information is correct in the “My Account” section of Abor.com.

Austin Real Estate Market Shows Strength in Second Quarter 2009

According to the June 2009 Multiple Listing Service report by the Austin Board of REALTORS®, the volume of single-family home sales in June 2009 was 2,135, down four percent from June 2008, and the median price was $199,900, unchanged from June 2008.

Home prices in the Austin area have also continued to gain momentum from the beginning of the year. Over the first two quarters of 2009 (January 2009 to June 2009), the average sale price for a single-family Austin home has increased $20,824, while median sales price has increased $24,400. View the full release online.

Legal Topics: Circumstances in Which a Buyer May Terminate a TREC Contract

In this month’s “Legal Topics” column, John McGill outlines the circumstances in which a buyer may terminate his or her Texas Real Estate Commission (TREC) contract. View the complete article here.

Time is Running Out to Join a Committee

Saturday, August 15 marks the deadline for all ABoR committee nominations. Participating in an ABoR committee is a great way to make a positive impact on your association and get to know other Central Texas REALTORS®.

With committees ranging from Government Affairs to Realty Round Up, you are sure to find a group that suits your interests. We invite you to sign up for a committee online . All prospective committee members must have active e-mail addresses and should be able to commit one year to their committee. For more information, contact the Executive Department at 512/454-7636.

News Archives