Home Valuation Code of Conduct (HVCC for short)
New Law as of : May 1st, 2009
The HVCC came about because the government felt that there were too many loan officers inappropriately manipulating appraisers (bribing, intimidating, etc.) to appraise properties for more than they were worth, so that the transaction would go through.
Loan officer orders the appraisal from a third part appraisal management company who assigns the appraisal to an appraiser within the area (ideally within 50 miles).
The loan officer doesn’t even know who the appraiser is until the report is delivered via email from the appraisal management company. Even after it is delivered, the loan officer is to direct all questions about the appraisal to the AMC (appraisal management company), who will forward the message on to the appraiser.
As you can imagine, the HVCC has led to higher costs for borrowers because somebody has to pay for the work of the appraisal management company. Appraisals now range in price from $400 to $550.