What regulations govern conventional loans related to home valuations?

The Home Valuation Code of Conduct (HVCC) specifically governs the standards and regulations associated with home valuations in the context of conventional loans. This code was established to ensure that the appraisal process is independent and that appraisers are selected based on their qualifications rather than their potential to influence loan approvals. By creating a set of guidelines for the appraisal process, the HVCC aims to enhance the integrity of home valuations, which is critical for lenders as they assess the risk involved in underwriting loans.

This code seeks to protect consumers and ensure fair treatment by promoting unbiased practices in appraisals, ultimately affecting the accuracy of home valuations that serve as collateral for conventional loans. Compliance with HVCC helps maintain quality standards in the home buying process, which ultimately benefits both lenders and borrowers. Other regulatory frameworks, while important in their own rights, do not specifically address the nuances of home valuation as it pertains to conventional loans in the same way the HVCC does.