What is HVCC? The Home Valuation Code of Conduct was brought to life by New York State Attorney General, Andrew Cuomo. Cuomo prosecuted Washington Mutual for influencing appraisal values through their appraisal management company (AMC) in order to fund more loans. Once that was accomplished, he bullied Fannie Mae and Freddie Mac to adopt what is now known as HVCC.
In theory, it is meant to protect consumers and keep fraud out of the appraisal/valuation process. Well, as with so many well intended programs, it is not helping. The consumers are hurt, the lenders are hurt, and appraisers are especially hurt. HVCC prohibits consumers, Realtors and even lenders from having direct contact with the appraiser. So how does one get an appraisal if one cannot make direct contact with the appraiser? Through an appraisal management company (AMC)! Yes, the same set up that Cuomo prosecuted WAMU over.
The effects of HVCC are devastating an entire industry. AMC’s are taking up to 40% of the appraisal fee; putting many good, experienced appraisers out of work or cutting their pay almost in half. Think about it this way: you just spent the last 20 years building a business. You have fought hard and worked hard to make a name for yourself. You are honest and trustworthy in your dealings with borrowers, lenders and Realtors. Now imagine that Uncle Sam steps in and tells you that you no longer have the ability to solicit business. Your name will be added to a list, if you are lucky, and if your number comes up and if you happen to answer the phone at that moment, then they will grace you with a transaction. You could equate this to standing in an old Soviet bread line and hoping that there will be some bread left when you get to the front of the line.
As a consumer, you no longer have a choice. It doesn’t matter that you would prefer to use the services of an appraiser that you trust to give you a fair and honest appraisal. You cannot choose an appraiser that has years of experience and knows and understands your community. No, sorry! So what if you get the completely inexperienced guy who just got his license last week. Does that really matter? Does it matter that your surgeon just graduated from Med School yesterday?
What if your loan needs to get transferred to a new lender? Most lenders are not allowing that appraisal to be transferred, resulting in you having to pay for a second appraisal fee. I could go on and on and on. I seriously do not know of one individual that has found anything good with HVCC.
It would seem that only a few blind politicians, which do not have a clue about our industry, are now running our industry. I equate that to me trying to fly a jet without ever taking a lesson. Maybe these politicians that keep coming up with insane ways to fix our industry stayed at a Holiday Inn Express for an evening, and now they think they can fix all of our woes! Mr. Cuomo, now that you have “fixed” the appraisal industry and have put thousands of honest, hard working folks out of business, please go find someone else to pick on. Only this time, try not to kill or severely wound an entire industry.
Please help us STOP HVCC. Go to www.hvccpetition.com. Thanks!
