An amendment that would sunset the much scrutinized Home Valuation Code of Conduct (HVCC) received unanimous support from the House Financial Services Committee this past week and passed by voice vote.
The legislation, offered up by Rep. Gary Miller (R-CA), calls on regulators to work together on one set of appraisal standards, while effectively phasing out the HVCC.
That means loan originators would be able to order their own appraisals again, instead of being at the mercy of Appraisal Management Companies (AMCs).
“While I am supportive of ensuring accurate appraisals, I have repeatedly expressed concern that the HVCC has potential to increase costs to consumers, significantly hinder a consumer’s ability to obtain legitimate and reliable appraisals, and adversely impact small business professionals who work in the very neighborhoods where these consumers are looking to purchase homes,” said Congressman Miller, in a statement.
“In fact, since the implementation of the HVCC on May 1, there are numerous examples of higher costs for appraisals, poor service, the inability to use one appraisal for more than one lender, questionable quality of appraisals, and the inability to make corrections to inaccurate information on an appraisal report.”
Miller previously came up with an 18-month moratorium on the HVCC, with the National Association of Mortgage Brokers a huge supporter of the bill.
Since the HVCC was implemented back in May, appraisers have argued that it has cut salaries in half while destroying key relationships.