On May 1 the new Housing Valuation Code of Conduct became effective. The new HVCC has caused much consternation within the real estate appraisal and mortgage lending professions. The new rules grew out of an investigation by New York Attorney General Andrew Cuomo. His probe found that one of the largest companies in the appraisal business, First American in Santa Ana, California allowed the giant savings and loan Washington Mutual to exert pressure for higher valuations. Cuomo sued First American's eAppraiseIT unit in the Fall of 2007 for fraudulent and deceptive practices. The suite prompted the drafting of the Home Valuation Code of Conduct. Fannie Mae and Freddie Mac helped negotiate the code with others in the industry with the result being that as of May 1 they would no longer buy loans that don't adhere to it.

This coming September, the Louisiana Chapter of the Appraisal Institute will be offering a brand new educational course required for all practicing designated members entitled Appraisal Curriculum Overview. All practicing SRA and RM designated members must attend the first day of the Appraisal Curriculum Overview (8 Hours) and are encouraged to attend the second day to receive the full 15 credit hours. MAI, SRPA and SREA designated members must attend both days of the Appraisal Curriculum Overview. The Louisiana Chapter will be offering this course on September 14 and 15 in New Orleans.

In an effort to raise the visibility of its charitable efforts, and solicit the ongoing funds to sustain them, the Appraisal Institute Education Trust has launched a new Web site. The site, located at www.aiedtrust.org, outlines the organization's efforts in terms of its scholarship offerings, its outreach to women and minority, and the Y.T. and Louise Lee Lum Library. 

Slumping rents and a dire shortage of debt available for refinancing could drive the default rate on U.S. commercial mortgages to 4.1 percent by the end of this year, the worst performance in 17 years, research firm Real Estate Econometrics LLC said in a report.

U.S. Housing and Urban Development Secretary Shaun Donovan said HUD would implement the mortgage reforms under the Real Estate Settlement Procedures Act that are scheduled to take full effect on January 1, 2010. Meanwhile, HUD is withdrawing, and announcing its intent to propose revised language relating to a narrow provision of the final RESPA rule that redefines a prohibited practice called "required use" where consumers are steered toward higher cost mortgage services provided by affiliated businesses.