JUST IN FROM THE NAR CONFERENCE IN SAN DIEGO

Realtors have been up in arms about the Home Valuation Code of Conduct since
Fannie and Freddie implemented the new rules governing appraisals implemented in
May.

Jerome Nagy, senior policy representative, said on Friday that NAR was concerned
when, this summer, FHA Commissioner David Stevens indicated FHA would also adopt
the rules. After NAR met with Stevens, FHA announced new appraisal guidelines that
will go into effect Jan. 1 that address some of the group's concerns.

Although FHA is adopting components of the Home Valuation Code of Conduct, it also
included guidance on geographic competency of appraisers, appraisal portability and
hiring appraisal management companies that should address some of the problems
Realtors have had with Fannie's and Freddie's rules, he said. Nagy said he hopes Fannie
and Freddie will adopt similar guidance to ensure uniformity.

Nagy also noted that HR 3044, a bill that would put an 18‐month moratorium on
enforcement of the Home Valuation Code of Conduct, now has 121 sponsors, and that HR 3126, legislation to create a Consumer Financial Protection Agency, includes language that would require the agency to draft new rules for appraisals that would supersede the code. HR 3126 has also been amended, at NAR's behest, to exclude Realtors from the definition of groups providing financial services and which would be subject to oversight by the new agency, said senior policy representative Tony Hutchinson.