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.