As I understand it, the Home Valuation Code of Conduct (HVCC) was passed to erect a barrier between Loan originators having undue influence on appraisers. Basically the Government is saying that Mortgage Brokers are twisting appraisers arm to inflate values so they enacted this law. As I sit and try to understand this new law here are my initial thoughts:
- Lenders have whats called in house "Appraisal Review". These departments basically analyze comparable sales to verify that appraisers aren't doing things like excluding better comparables.
- Why are some of the biggest lenders in the country allowed to run their own appraisal management companies?
- Why is there no oversight of Appraisal Management companies, no licensing required.
- There is a…
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