90-Day Comment Deadline: Code of Conduct

2:56 pm PDT, May 8, David Braun, Michigan

12:39 pm PDT, May 7, Elizabeth Norton, California
The Code itself appears to have been based on the very premise that appraisers are to blame for the current foreclosure crisis in our country! If this were indeed the case, the majority of foreclosure transactions occurring today would be happening simply because an appraiser provided an artificially inflated value at the time of sale. Having completed many appraisals for foreclosure and short-pay transactions in recent months, I have rarely found this to be the case. The overwhelming majority of properties that I have researched were initially sold at a prices that were within the range of sales prices for similar homes. The reason for the majority of foreclosure related transactions today is simply that borrowers have taken on mortgage payments that were more than they could handle. Yet in evaluating the foreclosure problem, no attention at all has been given to inadequate underwriting procedures on the part of lenders, or the responsibilities of individual borrowers themselves. And as many before me have noted, one end result of the HVCC as it is currently written will be a significant increase in the volume of appraisals which are managed by AMC's. The assumption that AMC’s are any less likely to engage in appraiser coercion than any other party to the appraisal process is completely without foundation. Perhaps this is most clearly illustrated by the fact that the original lawsuit filed by Mr. Cuomo which alleged appraiser coercion was not filed against a mortgage broker or other party, but was instead filed against an AMC! As was noted in the Appraisal Institute response to the Code, AMC’s services are meant to reduce lender cost and overhead, AMC’s respond by shifting costs directly to their contracting appraisers, the end result being that the independent appraiser is forced to accept a significant reduction in their normal fee while continuing to perform the same amount of work per assignment. Consequently, many of the best appraisers, who have in the past refused (or could not afford) to contract with AMC’s under such circumstances, will be unable to continue their operations and will be forced out of the profession altogether. The Code provides absolutely no penalty or adverse consequence to anyone who does engage in appraiser coercion. Nor does it require than an appraiser's voice or "side of the story" be heard before they are placed on an exclusionary list.

Federal and state regulation already exists for appraisers. Every time an appraiser signs their name to the certification statement of an appraisal report, they are placing their livelihood on the line and they are subject to severe penalties if it is proven that their value opinion was inflated or biased in any way. No other profession in the real estate or mortgage industry is subject to such regulation. It has not been adequately shown that inflated appraisals are the cause of the foreclosure crisis, but if inflated values and the foreclosoure crisis are the issue at hand, why not concentrate on sound underwriting and review procedures and enforcement of current law? Adoption of a Code which discourages appraiser coercion is an admirable cause. However, a Code must be adopted which addresses and penalizes the true culprits of coercion rather than unfairly, and without foundation, targets appraisers as the villain and threatens to destroy the profession. The most honest appraisers in the profession, those who positively contribute to the loan process by ensuring that their values are credible and unbiased, will be driven out.

9:02 am PDT, May 1, Gabrielle Robin, California
It is completely unfair to force apprasiers to use AMC's. As you know, this will cut our fees in half or more. Where is the logic in that?

What do you think the mortgage brokers and banks would say if we asked them to pay the fees to the AMC's, so that the appraisers fees are protected?

8:41 am PDT, May 1, Name not displayed, Rhode Island
The NY Attorney General means well and is trying to do the right thing but in a very corrupt manner. Threatening the GSE's with a lawsuit or agree to this HVCC is not the right way to do this and rewarding the AMC's after accusing them of doing the wrong thing (i.e WAMU/eAppraiseIT) is curious to say the least. FNMA and Freddie for years have been asked to agree to a national repository. Quality appraisers need there independence. But they also need to make a living without the interference of an AMC that will take 60% or more of their income with the only best interest is their profitability. As for in-house appraisers, they are the most "mentored" in the business.

1) The Attorney General needs to educate himself before regulating. 1) Require lenders to revise their reporting structure for all Chief Appraiser's and there staff to report to the company's risk division with "complete" control of the collateral risk process. 2) Require all ordering to be done through an appraisal vendor management function reporting directly to the chief appraiser. 3) Require the AMCs to hire "Certified" appraisers for "ALL" quality control and compliance reviews and that "ALL" such work is performed in the US. 4) Form an appraisal repository which is monitored by a separate appraisal independance board under the Appraisal SubCommitee including appraiser's name, property address, appraisal date, purchase price, and appraised value. 5) Require states to do there job and provide federal funds to be used solely for investigation and sanctions by the appraisal board. 6) Require interior photos, street scenes in both directions, and lisitings on all assignments.

2:15 am PDT, May 1, Name not displayed, California
I THINK THAT IS A BAD IDEA AND IS TAKING MONEY FROM THE APPRAISER. AN APPRAISER HAS THE RIGHT TO MAKE AN HONEY LIVING WITHOUT THE MANAGEMENT COMPANY SELECTING A RANDOM APPRAISER. ALSO, THE MANAGEMENT COMPANIES SHOULD BE ELIMINATED AND APPRAISERS SHOULD BE ABLE TO DEAL DIRECTLY WITH THE LENDERS.

9:11 pm PDT, Apr 30, Ozzie Gomez, Florida
It appears that the Federal Government has once again discovered a way to take the attention off of themselves. This agreement with Cummo will only hurt the persons attempting to make a decent living. There is no secret here, a management company is simply a middle man making generous profits for forwarding an order. AMC will continue to favor appraiser who inflate the values and work for pennies, you get what you pay for in life. If the control is given to management companies they will simply select the lowest bidder intern increasing their profit margin regardless of the quality of work. This is an industry that is over regulated and unorganized. In the state of Florida you must now have a college degree to be a state certified appraiser though you need not speak english to be a Realtor?! Something wrong with this picture. Make no mistake about it, no one will impose accountability on Realtors due to their power, and when I say power I meen monetary. The industry as a whole is broken!!!

An appraiser has the need to make a living and remain ethical as well. DO NOT impied the means of an individual making a living, create a centralized portal where all appraisal must be order without restricting the proper compensation an Appraiser deserves for the complexity of the job. Give a range or a menu per say. The industry standard is clearly $350. for an average appraisal. In areas which are complex in nature and an Appraiser can prove that he/she should entitled to charge additional for their time. Consider the increasing prices for data sources, fuel, tolls and inflation and consider the route of the problem. Other parties in the transaction must have accountability, Realtor, Mortgage Broker, Underwriters..... This a profession and everyone should be licensed and should be accountable for their actions.

2:54 pm PDT, Apr 30, Tammy Barnes, Arizona

10:33 am PDT, Apr 30, Brandon Chamberlin, Washington
Giving control to a management company to determine which appraisers complete assignments does not remove motivation to use appraisers who tend to come in higher, it just shifts the motivation to the owner of the AMC.

10:21 am PDT, Apr 30, Name not displayed, Washington
The hastily written Code of Conduct should in no way be a compromise for letting two agencies keep silent about their past actions. Appraisers and appraisal organizations are in agreement that if these standards are to come to fruition, more intelligent thought needs to be put into these standards and involvement needs to include the people who are most directly affected; the appraisers. This affects an entire industry and unfairly puts more weight and likely less income on appraisers backs. With changes such as this the industry will lose good and ethical appraisers.

http://www.nationalvaluationservice.org/ If the 'go-betweens' should take over... a cap of say $25 for AMC fees. As they are not to correspond with appraisers, it should be a very automated process.

10:08 am PDT, Apr 30, Michael Geis, Ohio
The appraisal process is too valuable to the lending process to further hamper good, quality appraisals. The effect of the HVCC will be to lower the appraisal fee and decrease the required delivery time further. The professional appraiser will not be able to make a living. This is particularly true with increasing gas prices and the current housing market situation.

I believe that legislation, known as FIRREA, was enacted many years ago to combat lender pressure, fraud, etc. I do not think we need more legislation. Rather, I believe we need more enforcement of the legislation already enacted. We've already found out that legislation minus enforcement is nothing but a waste of time and taxpayer monies.

10:01 am PDT, Apr 30, Bradley Corbin, Texas
Employing AMC's will result in inferior work because they are the only one's willing to do the work for less money that are paid by Management companies. The Appraiser that we hire as the originator are and should be the best in the business with the most experience.

The problem with the mortgage lending crisis has absolutely nothing to do with appraisals or brokers/originators for that matter. The problem in the mortgage industry have to do with too many automated systems that do not allow for judgement calls that for years were determined by humans. The debt to income ratios are TOO HIGH in the guidelines which is what is leading people to foreclose on homes. The problems are happening on fixed rate mortgages as much as adjustable rates. If you are going to place the blame somewhere take the computer automated underwriting systems and throw them out the window and let someone with common sense underwrite a loan.

8:43 am PDT, Apr 30, Justin Cooper, Arkansas
Why single out mortgage loans as bankers use the same tactics. Reward with increased business and punishment by economic sanctions if you do not bring in exactly what they want. Don't you wish you could pick your judge in a court of law and control his paycheck if he does not render a decision in your favor. Rotation lists in banks are filled with their boys and you are not on any bank lists if word gets around that you are honest. Honest appraisals are swept under the table, the honest appraiser is not paid or used again, and they will find someone to fix appraisal.

Enforce upon lenders to consider experience and credentials as their is not replacement for this in appraising. Enforce and monitor fair rotation. You can't get another job as it is if you do not play ball. Create a national internet log for appraisals for mortgage brokers and banks. Have an appraisal order and appraisal documented and not swept under the table. Monitor fair rotation by the log. Allow some grace to a borrower if the appraisal does not make the sales price or LTV ratio. As Is allows big business to step all over the little appraiser.

8:07 pm PDT, Apr 29, Gary Wagner, New York
I think it is not fair to take away all my clients that I have built over the last 10 years because of the lender's lending practices. The lender's lent the monies. Not the appraisers. It seems as if all the blame is put on the appraiser. What to stop the AMC's from fraud?? Am I missing something here or was it 2 AMCs that started this whole mess?? How can we be sure that the work will be handed out fairly? There are people/organizations in my state already charging to sign up for the list. What is to stop someone from bribing the AMC's for more of a work load? I think that it is only going to cause more problems in the future.

4:34 pm PDT, Apr 29, J Craig Wolff, North Carolina
The Code of Conduct empowers AMC's to pressure already reasonable fees down. It dimisses strong business relationships developed by appraisers and lenders who over the years have strived to provide strong and reliable collaterial evaluations.

The "Code of Conduct" is broken and short sighted before it is put in place. The "agreement" needs to be thrown out. It does not enhance the valuation product, removes crucial communication between appraiser and client and hurts the consumer.

3:58 pm PDT, Apr 29, Name not displayed, California
I believe that changes must be made to stop lenders from trying to influence us now and in the future but I don't think that this new system will solve all problems. I think that good, established, and honest appraisers will suffer.

I think a huge problem solver would be to establish a hotline where we as appraisers can call to report abuse.

2:35 pm PDT, Apr 29, Robert F. Jilek, Illinois

1:42 pm PDT, Apr 29, Name not displayed, Colorado
Good appraisers will suffer at the hand of a bad decision. With the price of gas what it is, appraisers need a pay raise. Not a pay cut.

1:23 pm PDT, Apr 29, Mark Myers, Indiana

12:09 pm PDT, Apr 29, Steve Loos, California
Any person who provides appraisals, BPO’s or AVM’s must be licensed and liable for their actions. Appraisal’s, BPO’s and AVM’s must be a independent value opinions or contain disclosures that they are not. If any entity can influence the value outcome of an appraisal, BPO or AVM there is no valuation independence. The controlling agency must be able to determine and regulate if appraisers, BPO and AVM providers are being influenced to produce a predetermined value. The controlling agency must be able to determine and regulate if the person ordering the appraisal, BPO or AVM is ordering multiple appraisals, BPO’s or AVM’s in search of a predetermined value. Appraisal management companies and other mid-stream entities can not be shielded against regulations by the virtue of the fact they are not the producers or consumers of the appraisal, BPO or AVM.

9:45 am PDT, Apr 29, Name not displayed, Texas
The powers that be have not seen the ramifications of what they are trying to put in place with this appraisal reform act. They have not seen the corruption first hand that we have seen with appraisal managment companies. They have a few appraisers in their back pockets that they use all the time and they push to get value worse than any broker ever has. They get away with it too because of the volume of business they send the appraisers. Also, have they thought of the impact on the consumer? I have talked to every appraiser in the business that I know and they will not work for $175 to $200 a file. Thats what they get after these Management companies take their cut off the top. They will increase the fees to between $500 and $600 for an appraisal. Wow, thats good for the consumer...put a middle man in place so things are more expensive. Thats what our government has always done though, so its par for the course. Also, what about the ability to even pull comps to see if you can get value? Who do we call. What about the fact that we will not get that phone call when a value is not there, and the appriaser complets the job, then we get stuck with some huge bill on a property that can not appraise. Man, these guys are not in our business and have no clue what they are doing to us. I guess they will when the make our industry tailspin further out of control than it already is. You would have thought that Fannie losing so much business in the last few months would make them realize that you are going to have some default on loans. Its a guarantee. So, lets tighten up the ropes to the point where only a fraction of the people can get loans anymore, and have to turn to FHA to get financed. Our Entire US economy is ran on real estate. And you guys keep on shutting it down further and further, causing what will most likely be a major collapse in the US economy. I hope your proud!

8:02 am PDT, Apr 29, Phil Johnson, Virginia

8:00 am PDT, Apr 29, Name not displayed, California
This agreement is about to empower the entities that have most significantly led to the decline in the appraisal quality, eliminate established business relationships, and lacks any enforceable method of insuring quality or accountability. Section III This proposal will force every lender into using some sort of AMC/Third party service providers creating monopolies which will ultimately result poor quality appraisal products. This agreement can not be put into force in its current format without restrictions on how these third party service providers are compensated and conduct their business. While there is no doubt that a lot of coercion was going on in recent years, the business practices of the AMCs are the most significant causes of these problems. Appraisers cannot provide a quality product in a rapid time frame and be profitable at the types of fees that AMCs offer. Having to complete an appraisal in two days does not allow most appraisers enough time to develop the analysis necessary for an accurate appraisal. Many loans were funded on faulty appraisals preformed by unknowing appraisers who were not being coerced by anything other than a time line. Simply making all lenders use third party entities will not ensure quality appraisals, especially if these entities are allowed to be wholesalers of appraisals. AMC's and the like should not be allowed to be compensated on the spread between the fee paid by the lender/consumer for the appraisal and fee paid to the appraiser. This type of compensation scenario will never allow for quality appraisal to be the primary goal of AMC's. The lowest charging appraiser will always be rewarded with business regardless of competency. Unless this type of provision is included, the HVCC will not improve appraisal quality; it will further accelerate the true problem. AMC compensation should be paid by the lender. While I do not think HVCC or any regulation should dictate appraisal fees, I feel that portions of the HVCC should be modified to the extent that third party service providers (AMCs) should only be allowed to charge their clients (lenders) a fee based on a percentage of the appraisal fee paid to the appraisers. This would take away the motivation to drive fees paid to appraisers down and would allow appraisers to perform better analysis on fewer appraisal while maintaining adequate compensation. In fact, this would motivate AMCs to improve their efficiencies in order to increase their profits versus forcing appraisers to take lower and lower fees. As part of improving their efficiency, the AMC’s will want to use and reward appraisers that continually provide quality work that does not require additional QC or call backs. Section V Section V of the HVCC requires qualification standards for those selecting appraisers. This is in conflict with the authority granted by Congress to the Appraisal Foundation. The qualification standards of section V of the HVCC should be established by the Appraiser Qualification Board (AQB) of the Appraisal Foundation, which has been authorized by Congress to establish qualification standards. Lenders, correspondents, and others selecting appraisers on behalf of the lender should be required to observe these standards. The AQB currently has congressional authorization to establish qualification standards and is well equipped, experienced and best able to fulfill this mission. Section VII & VIII HVCC requires lenders to measure and test appraisal and valuation quality. That testing and reporting of results cannot occur unless appraisal quality is defined. Also, Section I references “substandard performance” and “unprofessional behavior” of appraisers but these terms are not as of yet defined. Congress has granted sole authority to establish and define appraisal quality and appraiser standards to the Appraisal Standards Board of the Appraisal Foundation, and requires those standards to be observed by lenders and adopted by and enforced by all the states. Establishing a second organization (other than the Appraisal Foundation) that also establishes appraisal quality standards and defines acceptable levels of appraiser performance would result in a potential conflict with congressional and state legislation, and confusion in the market. This also would require appraisers to observe two different standards of care that may differ. Authority to establish and define best practices, quality, performance, behavior, and standards for appraisers along with uniform standards of appraisals, automated valuation models, broker price opinions, desktop and all other real estate valuations utilized by lenders, along with all quality testing reporting requirements of Section VIII should be developed, established, and coordinated by the Appraisal Foundation. Lenders should be required to observe all established standards. Why create another level of beucracy with the IVPI? A method of providing adequate funding for existing Federal and State agencies for enforcement of current and future regulations should be developed. The state appraisal licensing agencies should be charged with employing independent regional review appraisers that perform an independent review function on the suggested 10% of the appraisals and all valuation products. Regional competency is needed to truly determine and accuracy of appraisals. The idea of lenders or AMCs performing their own quality review function is ridiculous as is having them maintain their own complaint lines. If reviews were preformed by a qualified independent third party, the results of these review functions could be reported publicly based on an established nationwide rating system. These ratings would reflect on the appraiser, the AMC, the broker and the lender. This would create a quantifiable system where the consumers can check the quality of all these groups which would in turn force all of these groups to care about quality valuation products. Lastly, mortgage brokers should sign a certification which puts the integrity of the entire loan package on them. This too would make them accountable and concerned with the quality of the appraisal and the rest of the documentation in the file. They would no longer want to pressure the appraiser for a higher number. Regulations without a realistic method of enforceability will never eliminate fraud and abuse. The HVCC while good in intent will not solve the problems it is intended to solve without accountability to all market participants. Federal Entities, like the Appraisal Foundation and State Licensing Boards are already in place, as well as, sufficient regulations that if enforced would solve most if not all of the issues that the HVCC is intended to solve in the appraisal profession. More legislation and accountability needs to be placed on the other lending industry participants which have not been held accountable and are ultimately the cause of the current crisis.

5:43 am PDT, Apr 29, Richard Loor, New Jersey
To whom it may concern: Flagstar will not allow my clients to order appraisals directly from appraisers like myself because of the Code of Conduct; Flagstar is requiring my clients who may be brokers or bankers to order appraisals through an AMC. That was the original problem between eappraisit and WAMU wasn't it?! In one fell swoop my business is being destroyed because of "unintended consequences". Here is my primary issue: the Code of Conduct is contradictory in its meaning. Who says that the AMC's will "do the right thing". Who said that all fee appraisers are equal? Who says that all fee appraisers are so unethical that we can't follow the existing rules? Who said that it is wrong for an honest independent fee appraiser to build business relationships with clients? After all, it was the Appraisal Management Co.Eappraiseit working with WAMU that was the culprit! This is like a witch hunt and they are burning every independent fee appraiser in the process. The solution is to enforce existing appraisal licensing and banking laws and give the State Boards the authority and finances to do their job. The Code of Conduct sounds like restraint of trade; monopolizing, violation of existing Federal Laws and down right Anti American!

A class action suit is necessary to clear this up!

5:31 am PDT, Apr 29, Juan Carbonell, Michigan
I agree with the suggestions made by Dave Biggars, follows.

Dave Biggars PROPOSED HVCC REVISIONS I. No employee, director, officer, or agent of the lender, or any other third party acting as joint venture partner, independent contractor, vendor management company, or partner on behalf of the lender, shall influence or attempt to influence the development, reporting, result, or review of a collateral valuation through coercion, extortion, collusion, compensation, instruction, inducement, intimidation, bribery, or in any other manner including but not limited to: 1) withholding or threatening to withhold timely payment for a collateral valuation 1; (1 A collateral valuation is any real property value estimate, whether automated or produced by a human, used to support the origination and underwriting of a mortgage loan) 2) withholding or threatening to withhold future business from any valuation provider, or demoting or terminating or threatening to demote or terminate any valuation provider 2; (2 A valuation provider is any entity producing a collateral value estimate as defined in 1) 3) expressly or impliedly promising future business, promotions, or increased compensation to a valuation provider; 4) conditioning the ordering of any collateral valuation or the payment of any fee or salary or bonus on the opinion, conclusion, or valuation to be reached, or on a preliminary estimate requested from a valuation provider; 5) requesting that a valuation provider provide an estimated, predetermined, or desired valuation in an appraisal report, or provide estimated values or comparable sales at any time prior to the completion of a valuation report; 6) providing to a valuation provider an anticipated, estimated, encouraged, or desired value for a subject property or a proposed or target amount to be loaned to the borrower, except that a copy of the sales contract for purchase transactions may be provided; 7) providing to any valuation provider, vendor management company, or any entity or person related to the valuation provider or vendor management company, stock or other financial or non-financial benefits; 8) allowing the removal of a valuation provider from a list of qualified valuation providers used by any entity, without prior written notice, which notice shall include written evidence of the improper conduct, including but not limited to violations of the Uniform Standards of Professional Appraisal Practice (USPAP) or state licensing standards, substandard performance, or otherwise improper or unprofessional behavior as provided herein; 9) ordering, obtaining, using, or paying for a second or subsequent collateral valuation in connection with a mortgage financing transaction unless there is a reasonable basis to believe that the initial collateral valuation was flawed or tainted and such basis is clearly and appropriately noted in the loan file, or unless such collateral valuation is done pursuant to a bona fide pre- or post-funding valuation review or quality control process; or 10) any other act or practice that impairs or attempts to impair a valuation provider's independence, objectivity, or impartiality. Nothing in this section shall be construed as prohibiting the lender (or any third party acting on behalf of the lender) from requesting that a valuation provider (i) provide additional information or explanation about the basis for a valuation, or (ii) correct objective factual errors in a collateral valuation report. II. The lender shall ensure that the borrower is provided, free of charge, a copy of any and all collateral valuations concerning the borrower's subject property immediately upon completion, and in any event no less than three days prior to the closing of the loan. The borrower may waive this three-day requirement. The lender may require the borrower to reimburse the lender for the cost of the collateral valuations. III. The lender or any third-party specifically authorized by the lender to oversee the ordering, management, or review of collateral valuations (including, but not limited to, mortgage brokers, vendor management companies, and correspondent lenders) shall be responsible for retaining copies of all communications, whether ad hoc or automated in nature, between the lender or third party and the valuation provider. In addition, the factors considered when selecting the valuation provider must be documented and retained in the loan file as well. IV. The lender or any third-party specifically authorized by the lender to oversee the ordering, management, or review of collateral valuations must have in place prudent safeguards to isolate its collateral valuation process from influence or interference from the loan production process. V. Any employee of the lender or any third-party specifically authorized by the lender to oversee the ordering, management, or review of collateral valuations must be appropriately trained and qualified in the area of real estate collateral valuations. VI. In underwriting a loan, the lender shall not utilize any collateral valuation prepared by a valuation provider employed or retained by: (1) the lender; (2) an affiliate of the lender; (3) an entity that is owned, in whole or in part, by the lender; (4) an entity that owns, in whole or in part, the lender (5) a multi-discipline real estate "settlement services provider", as that term is defined in the Real Estate Settlement Procedures Act, 12 U.S.C.§ 2601 et seq.; (6) an entity that is owned, in whole or in part, by a multi-discipline "settlement services provider". Notwithstanding these prohibitions, the lender may use in-house valuation providers to order, manage, or review collateral valuations, or to provide collateral valuations in connection with transactions other than mortgage originations (e.g. loan workouts). VII. The lender will provide to all parties involved in the transaction a notice with the telephone hotline and the email address provided by the IVPI to receive any complaints concerning the improper influencing or attempted improper influencing of valuation providers or the collateral valuation process. Each borrower, as part of a cover letter accompanying the provided collateral valuation, will be notified of the same hotline and email address of the IVPI and their purpose. Within 72 hours of receiving any direct complaint regarding the collateral valuation or the collateral valuation process from a medium other than the IVPI hotline, the lender shall notify the Independent Valuation Protection Institute and any relevant regulatory bodies of the complaint. The name and any identifying information of the person or entity that has filed such a complaint shall be kept in strictest confidence by the office of the General Counsel, Chief Compliance Officer or other independent officer, except as required by law. The lender shall not retaliate, in any manner or method, against the person or entity which makes such a complaint. VIII. The lender agrees that it shall quality control test, by use of generally accepted statistical methods, a statistically significant percentage of all collateral valuations used by the lender. The lender shall report the results of such quality control testing to the Independent Valuation Protection Institute and any relevant regulatory bodies. IX. Any lender who has a reasonable basis to believe a valuation provider is violating applicable laws, or is otherwise engaging in improper or unethical conduct, shall promptly refer the matter to the Independent Valuation Protection Institute and to any relevant regulatory bodies. Any collateral valuation provider who has a reasonable basis to believe a lender is violating applicable laws, or is otherwise engaging in improper or unethical conduct, shall promptly refer the matter to the Independent Valuation Protection Institute and to any relevant regulatory bodies. X. The lender shall certify, warrant and represent that the collateral valuation was obtained in a manner consistent with this Code of Conduct. XI. Nothing in this Code shall be construed to affect the acceptable scope of work, or applicability of any or all of the provisions of the Uniform Standards of Appraisal Practice (USPAP), as regards a licensed or certified real estate appraiser in connection with a particular assignment, nor shall it be construed to equate any alternative form of collateral valuation with a USPAP compliant appraisal report prepared by a licensed or certified real estate appraiser.

1:17 am PDT, Apr 29, Chris Kohtz, California
What if you spent 1,000's of dollars for Harvard Law School, passed the state bar exam & looked forward to a semi-lucrative private law practice. This Law practice was meant to take care of your family for years to come. Your hard work, fees paid, money spent on education, long training hours, business expenses, marketing was completed by you to build your law practice. One day a letter arrives that states, “you are now a public defender with the following guidelines”: third party predetermined fees that would reduce your compensation at there will, no client contact, no way to advertise for your practice & no preference based on your Harvard Education or skills just random court assignments with fees that do not reflect your capabilities. Replace Law with the word appraiser & you are now in our world. How can you take our future & destroy it. I am an honest hardworking appraiser. I have refused to bend to lender pressure in the past to make sure that the estimated value reflected the actual market conditions which forced the sales price down to the correct estimated market value. Why are we being blamed when underwriters signed off on the loan package. We have never been able to approve a loan or check a borrowers’ ability to repay an ARM or fixed mortgage.

The HVCC must address the real problem. Make sure that applicant/borrower has the funds to repay the loan. What does the estimated market value have to do with the borrowers abilty to pay their mortgage?

3:29 pm PDT, Apr 28, Mikkel Kroll, California
The HVVC has good intentions but is punishing the wrong parties. More regulation is needed in the origination of the loan - such as borrower qualifications. In effect, the HVVC will get rid of licensed, educated appraisers who have been browbeaten by AMCs, mortgage brokers, buyers, sellers, investors and countless others who push to get a predetermined value. If the values don't come in, the appraisers lose any future business. In several cases, mortgage companies don't pay bills for completed appraisals and borrowers even cancel checks collected at the time of inspection. Yes the industry needs to be regulated - THE WHOLE INDUSTRY - STARTING WITH THE ORIGINATORS, FUNDERS AND INSTITUTIONS WHO MADE SO MUCH MONEY IN THE SUB PRIME MARKET!!!! If there are no modifications, independent appraisers who have spent so much time getting educated, gaining valuable eperience, staying licensed with continuing education will dissappear. They will be replaced with machines that never see a property, don't check permits or conditions and don't even know if a structure is still standing, or worse, large companies competing to keep business with other large companies - none of whom care who does the appraisal, so long as it is cost effective and the profit is made. Licensed independent appraisers on the whole care about the value and are regulated by each state. AMCs and AVMs need to be regulated the same way.

2:17 pm PDT, Apr 28, Name not displayed, Washington

2:06 pm PDT, Apr 28, Shelly DiQuattro, Washington

12:46 pm PDT, Apr 28, Jeff Rusch, Virginia
I've been in the business 15 years and have seen very little fraud out of thousands of appraisers that I've used. I've seen more abuse from AVM's then anything. The only way to get a fair appraisal is to have a licensed appraiser actually look at the property. While your intentions are good, this will make the mortgage crisis much worse.

11:39 am PDT, Apr 28, Tim Geertsen, Utah
Please use cool heads to fix this mess. The last thing that will help is to pull the rug out from under the consumers and limit their options.

11:24 am PDT, Apr 28, Name not displayed, Tennessee
I believe that modifications are necessary if the HVCC is to successfully safeguard the independence of the appraisal process and protect consumers from the severe consequences of erroneous valuations. The HVCC must be modified to maintain a level playing field for all appraisers, while helping to ensure their independence. Automated valuation models (“AVMs”) and appraisal management companies (“AMCs”) should be subject to the same restrictions and safeguards that apply to independent appraisers. In addition, all lender employees dealing with AVMs and AMCs should be required to satisfy the same training and qualification requirements that the HVCC mandates for employees dealing with independent appraisers. As drafted, the HVCC discriminates against independent appraisers and, through the loophole for AMCs and AVMs, in fact creates more risk for consumers and lenders.

I urge the revision of the HVCC to allow lenders and consumers to take full advantage of the independent role of qualified appraisers. Now is not the time to arbitrarily dismantle the protections that consumers are entitled to receive from independent appraisers.

11:18 am PDT, Apr 28, Carey Pierce, Colorado

10:09 am PDT, Apr 28, Shaun Murray, Florida

10:07 am PDT, Apr 28, Paul Maloney, Colorado
Hopefully the finished product will protect against getting pushed for a values, cutting appraiser fees to the point we have to take shortcuts, and protect us from not getting paid (in full) for our services in a timely matter.

8:55 am PDT, Apr 28, Ben Bayma, Washington
This does not address the problem at all. It was not appraiser's who allowed 100% financing with teaser rates beginning at 1/2 or less of what the borrower's payment would eventually adjust to! Having done dozens and dozens of short sales over the past months, the original appraised value of purchases might be called into question in less than 5% of the those short sales. It was the 100% financing,teaser rates and lack of lending regulations that caused the problem.How about having the mortgage and banking industry be licensed and fulfill ongoing educational requirements. How about some lending regulations that utilize common sense. Obviously, nothing was learned from the S&L meltdown in the 1980's. And as far as AMC's go, all they care about is low fees and quick turn time. Experience and quality mean nothing to them. Look at Zaio. You get a coverage area based on paying a fee, not on your qualifications or knowledge of the area. Mr. Cuomo was out to make a name for himself. I have no doubt that he will be running for Senator or Governor within a short time. Also, FNMA and FREDDIE MAC were quick to point the finger at someone else so as to mitigate their failures in this current meltdown.

Yes, something needs to be done. But, this is a poorly thought out, knee jerk reaction that will solve nothing other than to obliterate the little guy and totally empower the corporations. One would think Bush was behind this legislation. The quality and independence of appraisals will not be accomplished with this legislation.All appraisers must fight this!

9:30 pm PDT, Apr 27, Robert Gonzalez, Florida
I support the dodd/crowley IVPI proposal.

I support the dodd/crowley IVPI proposal.

10:01 pm PDT, Apr 26, Bart Nathan, California
Am i missing something here? Two well know AMC'S (Eappraiseit and LSI) have a suit filled for appraisal pressure. So now we are going to require Lenders to use AMC's?????????????????

10:54 am PDT, Apr 26, Michael Pritchard, California
Am I missing something here it seems to me if they passed a law stating that a bank has to hold a loan for 5 years after it is originated or if they do sell it that they are liable for it for up to 5 years they would want to make sure that the loan is as safe as possible and thare would be not need for anything else to be done.

10:00 pm PDT, Apr 25, Pam Thomason, Colorado

3:12 pm PDT, Apr 25, Tom Hubbard, California
I don't accept the premise. We are not the cause of the housing crisis. This is a typical politician trying score points and make a name for himself at the expense of the entire mortgage industry. According to Andrew Cuomo, the appraisal industry needs to be reformed from all the fraud, coersion and over valued appraisals that are generated every day in this country. Ridiculous. Appraisers didn't generate loans to people without jobs, no verifiable income, or FICO scores that resemble a baseball player's batting average. We don't need any more regulation. Aren't there laws already in place to penalize appraisers that commit fraud? If the industry really feels that there need to be more checks and balances how about 2 independent review appraisers for every job? let the mortgage industry sort things out for themselves. When they get tired of losing money they'll tighten the qualifications it takes to get a loan and everything will work itself out. More government legislation and/or regulation is never the answer.

10:56 am PDT, Apr 25, Scott Goodale, Colorado
I have read most of the comments written by my peers, and there is not much I can add. We all have ways that we think would improve the system and our industry, and that's great. Just a thought. Why is it that appraisers do not have a common voice? Google - National Association of Real Estate Appraisers. There isn't one. Realtors have NAR (National Association of Realtors) that represents over 1.3 million realtors and are in the ears of law makers every day. We have web sites and petitions, and orginizations that like to teach us how to be honest. I don't think get we heard. Ever. The loudest voice is always the people that profit from our industry most, like AMC's, lender, banks and software companies. We as appraisers are use to things being done to us, but never for us. The last number I heard was roughly 110,000 appraisers across the country. Why can't we form a group to represent us and our industry. We as appraisers are our own worst enemies. We compet every day to see who can get the appraisal done fastest for the least amount of money. Why don't the people doing things to us every listen to the guy driving around the neighborhoods, puting his/her career on the line and signing his/her name to the report. If this is about "Appraiser Independence" then listen to the independent appraiser. My father was an appraiser for many years. My broher was an appraiser for fifteen years until he couldn't stand it any more. I have been working as an appraiser for fifteen years and I can see why my brother quit. I wonder if there will be an appraisal industry for my sons that would will be worth getting into? If you want quality, the powers that be - can't keep increasing our hours/requirements and liability and keep paying us less. The good appraisers are going away. I'm sorry I haven't commented on how to improve HVCC, but deep down I think the decision has been made and this is our PC time and place to vent. Good Luck.

7:05 am PDT, Apr 25, Name not displayed, North Carolina
need to include BPO and AVM in wording

7:02 am PDT, Apr 25, Name not displayed, North Carolina
careful consideration of wording is needed

4:55 am PDT, Apr 25, Can Atik, Turkey

1:50 am PDT, Apr 25, Dianna Aguilo, Florida

2:34 pm PDT, Apr 24, Michelle Parker, Florida

12:01 pm PDT, Apr 24, Name not displayed, Florida
HVCC has good intentions but the proposed rules will likely have an opposite effect from the desired improvement to appraisal quality. AMCs are just a tool of lenders to get the desired result of packaged numbers that meet their needs. AMCs apply pressure to appraisers on behalf of the lenders, all the while taking 30 to 50% of the appraisal fee. This will force truly honest appraisers out of the business. We need to address the real problems. See suggestions below.

The prostitution of appraisal trainees has to stop. Do not allow trainees to do appraisal inspections and write reports alone, with the supervisor applying a signature to meet the lender's requirement. Make it mandatory that the certified appraiser must inspect the subject and comparables. Have the certified appraiser and the trainee both sign a certification on the appraisal that the certified appraiser personally inspected the subject. Apply severe penalties to both parties if they lie on this certification (suspension/revocation). Hold both of them equally responsible for negligence and fraud committed in the appraisal. That will keep trainees from going along with their supervisor when they know something isn't right. Apply severe penalties to appraisal firms who employ these bad apples. The penalty for wrong-doing has to out weigh the reward for taking such risks. Require licensing for mortgage brokers, loan originators and AMCs. Make all parties to the mortgage transaction (brokers, originators, processors, AMCs, etc.) sign certifications similar to the appraiser's certification on each and every loan with severe penalties for non-compliance. Establish a procedure for reporting of non-conformance. Enforce the penalties in effect already as well as those described above.

7:24 pm PDT, Apr 23, Thomas Thomson, California

6:13 pm PDT, Apr 22, Brenda Cox, North Carolina
My peers have stated it so well over 300 times below.

5:08 pm PDT, Apr 22, Aleasha Casaretto, Texas

1:38 pm PDT, Apr 22, Gary Gilbert, Texas
HVCC, as proposed, solves nothing. While the housing and credit crisis continues to weaken the economy, the same actors that are responsible for our current mess appear to have returned for an encore. What a shame. What a sham.

1:13 pm PDT, Apr 22, Dave Horne, Colorado
Who needs this. We aready have considerable ethics nd legal guidelines. just enforce what we have now would work.

The whole HVCC is poorly thought out and the best way to emplement it is not to emplement at all. Try to think of something from an appraisers perspective for once. The idea is good but a bunch of unthinking persons must have drafted the document. ... probaly a bunch of democrats. It is just another way to raise the costs to the consumer without providing any kind of meaningful safeguards. Anyway, thanks to all the participants for taking the time to at least come up with something.

12:45 pm PDT, Apr 22, Gary Thomas, Colorado
Gary E Thomas Certified Residential Appraiser

As written the HVCC is implementing new control over appraisals and appraisers. If this is to be an even playing field then the HVCC, if implemtned, needs to included all methods of "value" estimation. This includes BPO's and AVM's. I agree with the recommended revisions that are noted in the April, 2008 edition of the Appraisal Press. (www.appraisalpress.com). These revisions change the use of the words "appraiser" and "appraisal" to "a valuation provider" therefore including any and all providers of opinions of value to be treated equally. If the HVCC is implemented, at least this will help to level the playing field.

12:39 pm PDT, Apr 22, Betsy Barron, Colorado
HVCC was published as a great 1st DRAFT, but by no means should it be the FINAL product that is implemented. As everyone else has pointed out so far, giving AMC’s “the power” is not the way to go. I have reduced the number of AMC’s that I work with to those that honor my work ethics and requirements. I have dropped those that would call asking for “a reconsideration in value.” It is what it is! If the objective is to allow appraisers the ability to perform their jobs without pressure, I do not think there is currently an AMC out there that could fill the necessary “shoes” for this job. This position needs to be filled by an agency that has no ‘profit/benefit’ in the process than getting the assignment completed accurately and in a professional manner. I read the newspaper, AppraisalPress, provided by Alamode and it has enlightened me on many aspects of the HVCC that I had overlooked or had not analyzed to the necessary level. I agree with their feedback and hope that the HVCC will cover ALL aspects (i.e., BPOs, AVMS, appraisals, etc), of providing an opinion of value. Believe me if there is a loophole or a simple oversight in this document it will be found and taken to extremes, and it will not be to the benefit of the consumer or the Appraisal profession.

As for a solution, I agree that an independent agency should be formed. That their responsibility should be to ensure all appraisers are treated equally and that the consumer is protected.

9:47 am PDT, Apr 22, Name not displayed, California
As a Certified Appraiser, I take my role as a protector of public trust very seriously and I applaud the overall goal of the HVCC to eliminate lender value pressure. However, I am very concerned that the HVCC agreement as written will ultimately drive the appraisal ordering process to appraisal management companies (AMCs). I have several concerns about working with AMCs. 1. AMCs put a different type of pressure on appraisers. They don’t allow enough time for due diligence as required by USPAP, often requiring reports to be completed within 24 hours after inspection. Appraisers who don’t meet these deadlines get less work. This results in inferior and often misleading appraisals. 2. AMCs require a fee split, and their percentage has increased over the past two years as the demand for appraisals has gone down. The orders go to the appraiser with the lowest fee, and in areas where there are more appraisers competing for work, AMCs have been able to pressure many appraisers to reduce their fees. Appraiser selection should not be based on lowest fee, but upon quality of work. The HVCC agreement should be amended to limit the AMC processing fee, which should be separate and above the standard appraisal fee. 3. AMCs demand the same fee for all appraisal assignments based on report format (ie,1004), regardless of complexity of the assignment, distance, etc. There is little or no room for negotiation. If you turn down work, you get no more work. 4. AMC order co-ordinators are typically not knowledgeable in USPAP or appraisal practices. It is difficult to get answers or assistance when needed. The bottom line is that AMCs are “for-profit” companies, whose sole interest is in serving their “client” the lender. Dependable appraisers who do quality work are not valued. The knowledge and experience of an appraiser goes unrecognized and is not utilized. Without regulation and oversight of AMCs, the future quality of the appraisal profession will suffer. We are going to lose a great many incredible appraisers with years of experience. I went into this profession expecting to make a decent living, and I cannot afford to work for the fees paid by most AMCs. I’ve invested a lot of time and money getting properly trained and developing my business. I like most appraisers am self-employed and have the expense of maintaining my license, E&O insurance, subscriptions to my data sources and software provider, continuing education, association dues, automobile and gasoline, advertising, computer systems, office and field equipment, etc. Plus I have to pay for my own health care and both ends of my obligation to social security and medicare (15%). Thank you for allowing a comment period and for the opportunity to express my opinion.

9:08 am PDT, Apr 22, Name not displayed, North Carolina
The new rules set in motion by Andrew Cuomo are a great thing and a step at least in the right direction however, there are some major pitfalls in this as well. First of all these are guidelines and not laws, so they basically can not be enforced. Second they are letting the fox guard the hen house again, by letting Fannie & Freddie be in charge of overseeing that the rules are followed. This is a joke because they are a Hugh part of the problem and they were looking the other way, while appraisers like myself were screaming bloody murder to get the pressure and coercion off of us. They knew exactly what was going on, but chose to do nothing. Third, it appears that they will force the majority of appraisal orders to be ordered by appraisal management companies. They were also a Hugh part of the problem and were also not only looking the other way, but they were using the same strong arm tactics that the brokers, lenders & realtors were using, by applying pressure on behalf of the lenders. Appraisal management companies are the appraisers worst enemy, and to allow them to profit from our work is nothing short of a crime. They basically take between 30 to 50 % of our fee, while we do all the work and assume all the liability and responsibility. They have used and abused us as much as the brokers, lenders and realtors have. Mr. Cuomo found this to be true in his research, so I can't understand why they would consider allowing our business to be controlled by the very people that are responsible for the near collapse of our economy. This reminds me to much of the S&L crisis. They tried to blame it on appraisers then and now we are seeing the result of their actions over the past 30 plus years. Prior to the S&L crisis if you wanted to borrow money for a home, you either went to a Bank or an S&L, there was no such thing as a Mortgage Broker. After the S&L crisis came the Mortgage Brokers and the appraisal management companies. The Mortgage Brokers ended up being responsible for the majority of mortgage loans. While 95% of the brokers are on comission only, it is easy to see what took place. If they did not close the loan they did not get paid. With basically no responsibility to anyone, they became very agressive, and in a few short years if appraisers did not play along and get the numbers they needed to close the loan, that appraiser did not get anymore orders. As I said earlier we are seeing the result of how that worked out. Appraisal management companies also were created after the S&L crisis. The same pressure and coercion was applied by the appraisal management companies except that they used the fact that they could offer a volume of business. However appraisers have to give up a large portion of the fee and in most cases produce the appraisal in less time that it normally takes to do the inspection. The quality of the appraiser and the quality of work was typically much less than desired and the pressure to overlook problems and inflate values was just as strong. We need absolute appraisal independence and the only way to have that is to have laws, not rules or guidelines governing the lending process. Appraisers do not need a management company acting on behalf of the lenders. If the laws are clearly written and the penalties are harsh enough, and appraisers can have a way of reporting pressure, coercion, fraud and wrong doing by anyone and remain anonymous, all these problems will be solved. The question is do they really want to fix the problem or do they want to remain in control while they try to make it look as though they are trying to fix the problem. It can be fixed very easily without a lot of intervention. Appraisers have no reason to inflate or deflate value's without pressure to do so. Take the pressure and the coercion to do it all the wrong way out of the equation and the problem will take care of itself

We need absolute appraisal independence and the only way to have that is to have laws, not rules or guidelines governing the lending process. Appraisers do not need a management company acting on behalf of the lenders. If the laws are clearly written and the penalties are harsh enough, and appraisers can have a way of reporting pressure, coercion, fraud and wrong doing by anyone and remain anonymous, all these problems will be solved. The question is do they really want to fix the problem or do they want to remain in control while they try to make it look as though they are trying to fix the problem. It can be fixed very easily without a lot of intervention. Appraisers have no reason to inflate or deflate value's without pressure to do so. Take the pressure and the coercion to do it all the wrong way out of the equation and the problem will take care of itself.

5:43 am PDT, Apr 22, Kevin Goodale, Florida
This is "Appraiser (end of) Independence" legislation. We are independent Real Estate Appraisers for a reason. The government is about to force us to work for AMC and substantially reduce our income. The appraiser's are once again the scape goats! The root of the problem is the corrupt lenders. The bad appraiser is never more than the accomplice. It would be refreshing if the government would do there job in taking down the criminals without making the lives of good honest appraiser's more difficult.

1. Require two appraisals, this will keep "bad eggs" honest. 2. License all lenders. If they cheat, end their livlihood. 3. Provide a "whistle Blower" program for appraiser's with teeth. Harsh penalties for lenders acting against USPAP.

4:38 am PDT, Apr 22, Barbara Balik, Illinois
After going to school passing major tests for the state of Illinois and changing careers after 50 I can not believe that this could ever be happening. It will put out of work the honest hardworking indepenent appraiser.

The mortgage brokers who might have caused this situation 2 yrs ago are out of business and I feel strongly that those who are here today are very ethical and law biding. A management co for appraisals will not do a better job. Who then will watch them and who will the banks blame?? Everything is so tough right now to even get a loan, I think that future bad or overextended mortgages are a thing of the past.

8:30 pm PDT, Apr 21, Janine McCollum, Illinois
At first glance of the proposed new code, as an appraiser I was pleased to see the industry trying to make progress in eliminating/reducing fraud. However, upon further examination my support quickly changed to panic as I realized, that I was not going to be "protected", I was in essence going to be put out of business. As a single mother of 3 children, I have spent years networking and building relationships with brokers, and feel my right to operate as a small business is being violated and destroyed. I, along with many other good, ethical appraisers will be forced to close our doors, as I for one, will not compromise my quality of work and standard and work for an AMC. This is not going to solve the problem, but merely change hands. This is putting way too much power in the hands of lenders and AMC. The majority of us are upstanding professionals. The appraisers that inflated values over the past few years that contributed to this decline in the market are long gone...they made their money and are gone. The appraisers that are still here weathering the storm are struggling to stay in the business because it is their career...a chosen career of individuals who have a passion for this profession and will do what is right and ethical, even if that means turning in a questionable fellow appraiser or loan officer. This profession is my livelyhood. There has to be another solution. Please dont punish us all for the wrongdoing of a select few. While idea of improving and further regulating this profession is indeed necessary, I fear that this is being driven by fear rather than prudence. I feel the solution lies in education, and stricter review...if there were 2 appraisals ordered for each loan the problem would correct itself. I better stop writing now and start looking for another career...

7:59 pm PDT, Apr 21, Irvin Smith, Illinois

7:48 pm PDT, Apr 21, Michael Kuhle, Florida
All that this new rule will accomplish is to make AMC's a lot of money and appraiser get less. So the quality of the work will suffer in order to make up for lost money. That is for those that get to join AMC. As the work will actuall be less as AMC appraisers will need to do more appraisals to make up the diffference, so less actual appraisal work and less quality with more mistakes.

Instead of taking in house bank appraiser out of the loop, FNMA should be making the review process tougher by the banks and their appraiser. Obviously Washington Mutual was just churing out appraisals and reviews. The funny thing is there is only an estimated 2500-3000 bank appraisers. I dont think that they were the main problem with the exception of Washington Mutual There also needs to be some type of incentive to turn in bad appraisers without it being everyone trying to stab someone in the back.

5:43 pm PDT, Apr 21, Mark L Ferris, California
Finally Im tired pressure from Banks,Brokers,loan officers to get the value they need or even worst requests. I think its best that appraisal ording be taken out of the hands of Banks,Brokers and Loan Officers.

A National Appraisal Ordering System needs to be established and a appraisal quality scoring system need to be established to section out appraisers that need more education and need to be retrained. All Trainee appraisers must also be required to attend a formal appraisal school.

1:01 pm PDT, Apr 21, Todd Grier, Washington
HVCC will devastate the real estate industry ... The HVCC has a political agenda by giving control to the appraisal management companies. I could elaborate infinitely on this issue, however just the irony of this bill is enough to warrant its dubious intension. The AMC is the culprit in its development. So why would they expand the control of the AMC's????!!!

Set higher standards for Appraisers AND get rid of AMC's. Countrywide had the largest and original AMC. Look at there situation!!!!

11:21 am PDT, Apr 21, Robert Fagering, Washington
The HVCC unduly restricts the appraisers ability to operate a business in the same manner as the other parties already in the transaction,first the HVCC virtually mandates that all appraisal orders must be placed through AMC's which deprives indenpendant fee appraisers of nearly half of ther normal fees and which will not result by itself in greater independence from coercion. If left unchanged in the Hvcc instead of strengthening the appraisals used in collateral valuation,exactly the opposite will ensue as experienced appraisers leave the profession. They will have no other choice as 40% or more of their feesa will be handed over to AMC's and their business relationships gleaned over decades will be made worthless with the stroke of a pen. No other RESPA entitys forced to suffer such an egregious restriction especially the originators who engaged in the coercion in the first place. How is it fair to virtually bankrupt a small company in Tacoma Wa who had nothing to do with Washington Mutual or eappraisalit, where will our appraisals come from? How will we support of family sitting by the fax machine hoping to have a order come over from some one backeast that doesnt even know who we are? We took the oppertuntiy to bring our two children into the business and so there are three families here that will not survive. We where just informed that one particular AMC signed up Landsafe and all of there appraisers have signed up to join the AMC and it is not open to any new appraisers, therefore CountryWide owns Landsafe will still have the same appraisers doing the work not affording anyone else on the list where does business come from for a small business in Tacoma Wa? Punish the Lenders and the appraisers that got the industry into this mess not all lenders and all appraisers, The cure is worse than the disease. It appears to me that substantial AMC and lender influence is in the language of the HVCC. Please just tell me where is our business going to come from how are we going to pay the bills we already have with less money paid by the AMC's {if you are lucky enough to get on there lists and if your lucky enough to get one order a day, this will wipe out the industry period.} Please just tell me where is my business going to come from, and how do you get on AMC's when there clients wont accept new appraisers? This is just the worst thing possible for small independant fee appraisers. Go after the big people and leave the little people doing there jobs correctly alone.

Shread it and start over..............Think about the little people, make Washington Mutual and Appraisalit resonsible for there misdeeds and leave the rest of the honest appraisers alone. Unless you own a AMC you might as well call it quits. Pack up all the loan officers that talked these people into taking out a loan on there home they new the people couuldnt afford, make them pay the miliions of dollars back, they recieved out of those deals not the $400.00 a porr littkle appraiser gets if hes lucky enough to get that much for 8-10 hours of work, the loan officers made millions, the small little appraisers paid there bills and had a burger.

6:36 pm PDT, Apr 19, Name not displayed, California
The law suit in NY that this HVCC is based on, is a suit that involves WAMU and eappraiseit(AMC). So, this HVCC is taking the ability for me, as well as other appraisers, to do business directly with loan officers, loan companies, financial institutions, etc., and handing it over to AMC's like eappraiseit??? This gives more power to the corrupt parties, and not addressing the main issue. The loan officers, loan companies, financial institutions, etc. should be held more accountable. I don't understand how it is the appraisers fault, and we are made to be hung out to dry(more like DIE). I have been making, on average, $350.00 an appraisal for the last 10 years. My fees have not increased, and I do not make more if the value comes in higher(fees can NOT be based on percentage). On the other hand, in Southern California where I am located, property values have doubled/tripled and loan officers, sales agents, brokers, etc. are making a percentage on the loan amount, which in my opinion has always been absurd. This gives more incentive for the loan officers, sales agents, brokers to do whatever they can to put pressure on the appraiser. There is a simple solution to this, more oversite on these individuals. I think there should be a flat fee system for these individuals. Every appraisal is not the same, and I base my fee on the complexity of the appraisal, the area/distance traveled, the loan amount(not because I get more, or a percentage, but because of more liability on higher values), etc.. I may be wrong, but in my opinion every loan is pretty much the same, and the only incentive is the fact that they get a percentage of the loan amount being done. Simply put, if that loan officer had to go out and work as hard as me, or any appraiser for that matter, for a set fee....I guarantee there would not be the amount of pressure from these folks doing loans that has been seen over the last 5 years. I know this will not correct the problem, but it would help. There's always going to be a percentage of bad loan officers/sales agents, just like there is always going to be a percentage of bad appraisers. However, who benefits more on a loan of $500k, an appraiser making $350.00 for the appraisal, or a loan officer making 1% off the front end and 1% on the back end(2% = $10k). I think alot of these issues, with pressure being put on the appraiser, would be resolved if they simply set up independent federal and state agencies that appraisers could contact to blow the whistle on individuals or companies that put pressure on an appraiser. If the loan community knew that there was strict independent oversite, they would possibly think twice. Also, this HVCC just adds another layer of people to take a portion of my fee to pass down the word to meet the values from the loan company. This does not solve the problem. Simple solution, tell the loan companies that they are not allowed to discuss numbers, estimates, anything to do with the loan or value. Other than reviewing a purchase contract or identifying MLS data, I should not have any knowledge of numbers dealing with the loan. Another solution, if they want this distance between lenders and appraisers, is to set up individual state agencies that all appraisal orders are required to run through this system, not AMC's. I believe FHA had a system in place years ago where if you were an FHA approved appraiser you were on there panel and FHA set the fee, which I believe was pretty standard, and they assigned the work on a rotation....FAIRLY. The system has to be fair, and the only way that is going to get accomplished is if the federal or state government agencies are involved. Otherwise, they are turning all the appraisal business over to private parties like LSI, eappraiseit, etc. to run the show and it will NOT be fair. Regardless, the system needs to be fair, this is NOT fair, and not in the best interest of appraisers, independent or not. That's my 2 cents, for what its worth.

5:00 pm PDT, Apr 19, Corey Krawczyk, Colorado
I just recently became aware of the new lender "Home Valuation Code of Conduct." At first glance it appears to protect the appraisers from any pressure from lenders. But then the bombshell, according to the HVCC, Mortgage Brokers will no longer be able to have any contact with the appraiser; they cannot even order the appraisal. This would require the big invertors like Wells Fargo to order all of the appraisals from Appraisal Management Companies. If it passes the HVCC will go into effect on 1/1/2009. I have worked for 25 years to build my relationship with area Brokers and these small companies have never pressured me to “hit the mark.” This new requirement appears to be somewhat hypocritical, considering the main investigation was because of Washington Mutual requiring an AMC to over inflate property values. Instead of going after the bad guys, many innocent appraisers will be swept under the rug, not that anyone really cares. In Colorado both appraisers and Mortgage Brokers have to be licensed with the Department of Regulator Agencies. This department is very, very, aggressive when it comes to punishing bad Appraisers and Brokers. The new HVCC is overkill, considering much of the fallout in the Real Estate Market is because of creative financing like ARMs, down payment assistance programs, and 100% financing. The appraisers had nothing to do with this. At one time home ownership was a privilege for people who qualified. At some point homeownership became an entitlement program. Lenders, all of them, approved people who should never have been approved. Yes, bad appraisers need to be removed from the profession but why punish all of us. How will appraisers function as “fee appraisers” when the AMC will dictate the fees? Also how many good Brokers will lose clients because they will have a hard time locating the best investor for the client? If ABC broker wants to send the loan to Wells Fargo, will Wells Fargo orders the appraisal from an AMC. The Broker or the client will need to pay for that appraisal. Now what if Commonwealth has a better rate, will Commonwealth order an appraisal from a new AMC, and so on? Who does this protect? the client? Most brokers shop around to locate the best deal for the client; will the Broker only be able to use one Lender in fear of paying multiple appraisal fees to AMCs? As appraisers we render valuable services to our Brokers, not only in relation to the value of the property, but to their clients as well. As an appraiser, I like the fact that I can call the Broker and tell them that the house is in a flood area, or that the roof is damaged, or that none of the utilities were working. I tell my Brokers this up front so that they can do something about it. If we are forced to work for AMCs, the Brokers will see or hear this after the appraisal is completed. If a property is in a flood area the cost of the insurance might “kill the deal.” My Brokers would like to know this up front. Do the AMCs inform the Brokers of these items? No, the appraisal will be completed, and sent to the AMC, the AMC will then send it to the Lender, the Lender will them finally tell the Broker. How is this serving the Public? The Brokers and Appraisers need to have some type of relationship.

5:25 pm PDT, Apr 18, Robert Case, Washington
This will impact all appraisers who are trying to market new business from most sources. Do we really need to turn more power over to the AMC's that want to cut fees (LSI)even more???? By limiting those able to order the appraisal, it could possibly result in an "old boys" network (ValueIT) and add more power to an underwriter who is located farther away from the subject property and just reads the reseach without doing due dilligence.

better policing of the appraisal reports by qualified underwriters, would help all in providing better reports.

4:21 pm PDT, Apr 18, Timothy Tolbert, California
This does not address the problem at all. It was not appraiser's who allowed 100% financing with teaser rates beginning at 1/2 or less of what the borrower's payment would eventually adjust to! Having done dozens and dozens of short sales over the past months, the original appraised value of purchases might be called into question in less than 5% of the those short sales. It was the 100% financing,teaser rates and lack of lending regulations that caused the problem.How about having the mortgage and banking industry be licensed and fulfill ongoing educational requirements. How about some lending regulations that utilize common sense. Obviously, nothing was learned from the S&L meltdown in the 1980's. And as far as AMC's go, all they care about is low fees and quick turn time. Experience and quality mean nothing to them. Look at Zaio. You get a coverage area based on paying a fee, not on your qualifications or knowledge of the area. Mr. Cuomo was out to make a name for himself. I have no doubt that he will be running for Senator or Governor within a short time. Also, FNMA and FREDDIE MAC were quick to point the finger at someone else so as to mitigate their failures in this current meltdown. Yes, something needs to be done. But, this is a poorly thought out, knee jerk reaction that will solve nothing other than to obliterate the little guy and totally empower the corporations. One would think Bush was behind this legislation. The quality and independence of appraisals will not be accomplished with this legislation.All appraisers must fight this!