The HVCC ( Housing Valuation Code of Conduct) looks like a good idea, but in fact is bad for consumers, and is actually technically illegal.  The article was only one sided, and did not go into all the facts:

1. The HVCC was developed as part of a settlement by Fannie Mae and Freddie Mac in a lawsuit by Andrew Cuomo, Attorney General from the State of New York. Fannie and Freddie are Federal entities, and the Attorney General has no jurisdiction to determine regulatory guidelines for Federal agencies, there is a very well defined procedure for that. There have been many letters of protest from heads of Federal Departments that this agreement violates Federal rulemaking protocals, and is therefore invalid and unenforceable.

2. The article was inaccurate by stating that the HVCC does not require the use of AMC's, becuase it does. The only exception is when a large bank lender can order an appraisal through it's own in house appraisal division, which is clearly not an arms legnth transaction.

3. AMC's are large corporate appraisal clearinghouses that will charge the consumer more for an appraisal than a local small business appraiser would- about $500 vs $350, while giving a smaller amount of the fee, like $150-250 to the actual appraiser, keeping the difference. This raises a Section 8 RESPA violation issue- prohibiting an unearned fee. What service does the AMC provide to the consumer for the extra charges?

4. AMC's will seek out the cheapest and least experienced appraisers by paying the appraisers less, and experienced, professionals who specialize in particular towns or neighborhoods will suffer accordingly and be put out of business.

5. The appraisers in the articles mentioned that they have been requested to come up with a certain number for a value. In a purchase transaction this is absolutely required, for a neutral third party appraiser to independently determine through standard procedures the value of a property that a seller and a buyer in a free market have agreed to. The appraiser needs to know this proposed purchase price accordingly. In a refinance, a preliminary inquiry of an appraiser by a broker is routine, to determine if it is worthwhile to pursue a refinance process. If brokers are not allowed to speak with appraisers for verbal estimates of value, a full blown appraisal will have to be ordered and paid for by the consumer (committing $500) for an appriasal that may come in too low to justify going ahead with a refinance, and having the homeowner out the $500 for nothing.

Is this consumer protection- higher fees, less quality, less accountability, less competence?

An example of another stupid regulation made by an ambitious, publicity seeking politician who knows nothing about what he's regulating, at the expense of the consumer.

Just say NO to HVCC! Write your Member of Congress!