Home valuation conduct codes are rules that Fannie Mae and Freddie Mac are expected to put into effect in 2009. They will bring marked changes in real estate lending. Here’s what these changes may mean to a home buyer or home owner.

The Good:

No one who stands to gain financially from a real estate transaction — including loan officers, mortgage brokers, or Realtors — will be allowed to order an appraisal to get property financed or refinanced. Only the actual lender can order it, and those involved in the loan production area will be precluded from ordering an appraisal or communicating with the appraiser in any way. This effectively eliminates the chance of anyone having influence over an appraiser. No one involved gets to have any choice in who is hired to appraise the property. No one gets to communicate a desired valuation to the appraiser.

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