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In a recent internet poll, real estate industry professionals were asked to indicate the value that was generated by their last HVCC appraisal relative to the sales contract price that the seller and buyer had agreed upon. With 57.7% of the sales values being lowered by more than 3% the results below highlight how dramatically HVCC is artificially deflating the value and equity of every home in America.

October 21, 2009

Congressmen Gary Miller, Travis Childers and Don Manzullo presented an amendment to H.R. 3126, Consumer Financial Protection Agency Act of 2009. The amendment mandates within 60 days of enactment FNMA; a promulgation of new regulatory appraisal independence requirements and it once again allows Originators (Bankers and Brokers alike) to order appraisals. It goes on to further stipulate that HVCC will no longer shall no longer have force or effect. This petition was presented to the House Financial Se rvices Committee as supporting evidence of the harm HVCC is causing consumers and the housing recovery. The amendment was voted on and passed the committee; now on its way to the House of Representatives for final vote. If passed it will go then to the Senate for final resolution.

1. Since "Appraisal Management Companies (AMC's)" are taking up to 40% of the total appraisal fee, and are not being regulated to ensure that their appraisers are licensed and competent, we are seeing unlicensed and inexperienced individuals performing property inspections with grave data entry errors. These inferior appraisals are then being "signed-off" by other parties that NEVER INSPECTED THE PROPERTY and are creating unnecessary financial hardship for buyers and sellers.
2. With mortgage loans being denied due to inaccurate appraisals, borrowers are being forced to apply with other lenders who in turn have to charge the consumer ANOTHER APPRAISAL FEE to proceed with the transaction. This vicious cycle can go on endlessly costing well intended clients a great deal of money and time. 
3. Under HVCC, no one involved in the transaction is allowed to communicate these major issues (EVEN LICENSED LOAN ORIGINATORS) directly to their appraisers. So countless real estate transactions that would have otherwise closed are now failing, resulting in continued property devaluation and offering NO stimulus to our economy with the exception of the unregulated AMC's who are making unjustified profits at the expense of home loan applicants and licensed, qualified appraisers.
4. Licensed appraisers have legal and ethical standards in place already. The emphasis should be on making appraisers abide by these, rather than frustrating the ordering and communication process. This well intended legislation is severely misguided.

Although HVCC has good intentions, its flaws are severely hurting our housing industry, the consumer and our economy. We are requesting that HVCC be discontinued permanently, in order to stop the devastation it has caused and will continue to cause on our housing industry and our economy.

September 21, 2009 

HVCC Continues to devastate home values across the US.  We fear that with higher Fannie and Freddie loan limits it will carry through to our former “jumbo” markets, leading the country even further into recession.  As we’ve shared, Representatives Childers (D-MS) and Miller (R-CA) introduced legislation (H.R. 3044) requesting an 18 month moratorium on the Home Valuation Code of Conduct (HVCC).  H.R. 3044 now has over 54 co-sponsors and now is the time to forward our petition to every person you know and every representative in the country.  Read some of the comments in the petition and you will soon understand the harmful nature of this horribly misguided code.  ThinkBigWorkSmall applauds the introduction of H.R. 3044 and would like to thank Representative Childers (D-MS) and Representative Miller (R-CA) for their continued efforts and leadership on this issue but it is not enough. Tens of thousands of consumers have already been robbed of their opportunity to enjoy historically low rates by Attorney General Andrew Cuomo’s rule. HVCC needs to be permanently reversed in order to restore lower costs to the consumer and to protect the thousands of real estate transactions stalled by this horribly misguided code.

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