What Will the New Appraisal Regs Mean to Home Buyers?

This year is shaping up to be a great opportunity for buyers to get into the market or even to become a move up buyer if possible. Home values are down, interest rates are low, loan limits are up, and therefore affordability is the best it has been in 10 years or so.
There have been many changes in the loan process, but the appraisal rulings that took affect on May 1st may be some of the biggest. Now all lenders (bankers, brokers, direct lenders, etc.) are required to adhere to the HVCC (Home Valuation Code of Conduct). This new requirement is going to change the way they do their business and how they order and manage the appraisal process.
First of all, a mortgage professional can no longer contact an appraiser directly to order an appraisal, coordinate an appraisal, or even ask about comps. All appraisals must be ordered through a "centralized" appraisal management system. Once the appraisal request with all required documentation is completed, the buyer then receives an e-mail and is required to pay for the appraisal by credit card. This must be done prior to the actual appraisal order being completed. Once this is done, the appraisal order can be placed with an appraiser from a list of local appraisers. The turn-around time for to receive the completed appraisal is about seven days from payment.
It will be very challenging in the future to have any appraisal contingencies which are less than 10 days and any financing contingencies which are less than 14-17 days.