Have You Been Burned by a Bad Appraisal from HVCC? Take Action Today!


NAMB, the National Association of Mortgage Brokers, has a call to action that many people beyond the lending industry may feel strongly about: HVCC.  The Home Value Code of Conduct is a controversial act that was created to not allow mortgage originators to be involved with the selection of an appraiser.  Overall, the results have been a mess.  Instead of punishing the few, the masses are taking the hit with many appraisals being done by those who will take the lowest bid and/or who are not familiar with the neighborhood where the appraisal is being done…while the Appraisal Management Companies, the channel where many appraisals are ordered, are taking about half of the appraiser's fee for placing the order–guess what?  Most of the AMC's are owned by banks and title companies.  AMCs are unregulated!  HVCC is wrong and bad for consumers.

I have no issues with an appraisal that comes in lower than expected as long as it was done properly.

What can you do about HVCC?

Members of Congress are back in session and they need to hear from you–their constituents.  HR 3044 is a bill that would put an 18 month moratorium on HVCC (the Home Valuation Code of Conduct).  Please contact your Congressman today and ask them to co-sponsor HR 3044.  I just sent an email to Congressman Jim McDermott…it took me less than 5 minutes.

And please be sure to sign this petition.

Feel free to share this post with your friends, family and co-workers…especially if they have been impacted by HVCC.


  1. mgtglover@aol.com says:

    In the middle of my refinance, the appraisal came in ridiculously low…even $30,000 under my recent (very low) tax valuation. The lender wants PMI – fine, (tho we put 20% down at purchase 2 years ago and have done $35k in renovations!!) Then they start questioning the lowball appraisal….want us to pay for yet another appraisal with no guarantee they’ll fund…hmmm do they own the AMC?? BTW – our mid score was 750. The home is on Kaneohe bay on Oahu…crazy. Sign the petition & write your congresmen – please!

  2. mgtglover, sadly your home value is dependent on what other homes have recently sold and closed for in your neighborhood. Did the lender provide you with a copy of your appraisal yet (per HVCC, they are suppose to).

    This is a classic example of why HVCC sucks…now you get to shell out another $400-$550 for a second appraisal… this is costing consumers big time.

    Thanks for sharing your situation.

  3. I had a HVCC appraisal come back at $460k. Both client and me knew it was wrong. Ordered second appraisal… value…

    drum roll…


    It was in one area of town where simply crossing a major road could drop value by up to $100k. The first HVCC appraiser didn’t know this, but the second one did. Value supported as the client’s neighbor barely three houses down just sold for $580k.

  4. Russ, sadly this is far too common. I had appraisers that I worked with based on certain areas. I would never send my Seattle appraiser to value a property in Walla Walla…and I wouldn’t want a Spokane appraiser valuing a home in Bellevue. I really hope that HR 3044 is passed…I understand it’s stuck on Barney Frank’s desk right now.

  5. Joan Chappell says:

    We just had an appraisal done for our refinance, came in at 225,000, which was close to what I guessed, based on the market in our area. Every thing was fine, and then a week later, I was informed that the lender had requested another appraisal and it came in at 170,000! I can’t complete the transaction, which puts my remodel completely on hold. Our house is not unique, the comparables were within the last 9 months and were weel, comparable, and my credit score is 812. Go figure.

  6. Joan, did your lender give you any reason why they ordered a second appraisal? This is nuts–I highly recommend you contact your representatives in Congress and plead they endorse HR 3044.

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