• The Independent Valuation Protection Institute IVPI) is currently being developed to implement the Home Valuation Code of Conduct (HVCC). IVPI will indirectly regulate appraisal management companies (AMC's) by funneling real estate appraiser complaints of valuation pressures to the appropriate federal or state regulator, or a federal law enforcement agency if necessary.


    HVCC went into effect on May 1, 2009, changing the appraisal process nationwide so that loan originators can no longer make direct contact with a real estate appraiser: hence, request for appraisal orders must now go through an appraisal management company.


    Appraisal management companies act as middlemen, taking mortgage lenders' orders and hiring appraisers to complete the job. Both appraisers and mortgage brokers are regulated, require background checks, licensing, and bonding/insurance. But in some states that is not the case for AMCs.


    Once IVPI is up-and-running, "Appraisers will be able to contact the Independent Valuation Protection Institute if they feel pressured, threatened or bribed into situations that compromise their independent valuation's and compliance with HVCC."


    Initially, the National Association of Mortgage Brokers (NAMB) challenged the New York state originated law (HVCC) but backed off its lawsuit because of the Federal Housing Finance Agency.


    Industry critics are baffled by how a state law (HVCC) could so quickly have a nationwide impact, affecting industry practices.


    Independent Valuation Protection Institute

    Appraisal Press: Home Valuation Code of Conduct

    Appraisal Press: HVCC: The Cure Is Worse Than The Disease

    More Information:

    Federal Housing Finance Agency

    The Free Library: Appraisal Management Companies on the Rise What are they thinking?

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