HVCC – It’s a Joke That Isn’t Funny

In a country where people have made fortunes through hard work and free enterprise it should be a crime what has been done to appraisers today. The HVCC (Home Valuation Code of Conduct) is a classic example of one apple ruining the entire barrel.

You can HELP by joining the group, Reverse HVCC on Facebook, and signing the petition at the Reverse HVCC website!

HVCC is eliminating highly qualified, ethical, and responsible appraisers from the industry because these appraisers won’t allow their fees to be cut in half and they won’t be forced to do shoddy, irresponsible and fraudulent work for AMCs (Appraisal Management Companies) – in short, they would rather see their business DIE than comply with ridiculous regulations that hurt the homeowner and their clients as well as the appraisers themselves.

Due to HVCC appraisers are no longer allowed to build their businesses in the traditional fashion. They aren’t even allowed to build their businesses at all. All the time spent nurturing good business relationships with trusted clients in the mortgage and real estate industry is down the drain now because clients can no longer select their appraiser themselves. Clients are forced to order appraisals through an AMC and an appraiser is selected FOR them. At times the appraisers selected are from another county entirely and have NO KNOWLEDGE of the market area, yet these appraisers are sent out to do work while qualified appraisers sit back twiddling their thumbs and listening to the complaints of their former clients who are left receiving less than quality appraisal reports.

Over the last year Ascot Appraisals has mainly done FHA appraisals. AT this time (until February 2010 – is our understanding) we are still allowed to accept orders directly from our clients as long as they are for FHA appraisals. This is due to change as HVCC continues to ravage the industry like an out of control cancer.

Soon, we will no longer be able to contact our clients, we won’t be able to discuss ethical business related matters because our clients won’t be able to USE US unless we literally surrender our business, ethics, and hard work to an Appraisal Management Company – and even then, our clients wouldn’t be able to specify to that AMC that they want to use us.

The AMCs require appraisers to return completed reports in LESS TIME than it actually takes to research and compile ethical and accurate report that abides by USPAP guidelines. Instead, incorrect values are being made, less than appropriate comparables are being used, and research that goes into compiling an accurate report is being eliminated altogether.

You get what you pay for… and this is living proof of that.

It doesn’t matter if you work in the industry or not, if you support small business, if you own your own home or any property at all, if you are planning to buy a home – this affects you directly and painfully.

You can HELP by joining the group, Reverse HVCC on Facebook, and signing the petition at the Reverse HVCC website!

8 Replies to “HVCC – It’s a Joke That Isn’t Funny”

  1. Pingback: Amy’s Musings » I Was Asked To: American Residential Law Group

  2. Sounds like you’re as fed up with the HVCC B.S. as we are. Are you ready for an appraisers strike? It’s really the only solution…appraisers refuse to think about it though. They think they have something to lose. The truth is they’ve already lost everything by waiting to act.

  3. @David – Thank you for your comments. I’ve been running around saying the same thing. What if appraisers just took a month and refused to work for AMCs at all? Where would they be then?

    The sad thing is that I think there are so many people willing to cut each other’s throats for that “one” deal that it would be difficult to pull off. At this point I have not done any AMC work at all. But, when FHA switches over… that might be a different story and I might be in a jam.

  4. I’m with you on turning down AMC work. I spent 18 years building my appraisal practice but chose to walk away from it last July. Show me a profession where you are not allowed to work with the clientele that you spent 18 years building and I’ll show you a dead end job. If I wanted to give up one half my income to a pimp (AMC) I would have taken a job as a man whore on a street corner. There is no way that HVCC is a case of unintended consequences. It’s simply another case of the big banks using Andrew Cuomo in their quest to make a few billion dollars more off the sweat of new and retarded appraisers.

  5. I am ahead of you guys. At first I simply don’t accept AMC work unless it paid my full fee. However, after surveying the fact that with the HVCC i no longer have the right to build my business by pursuing and servicing the clients I choose to service and was left sitting aroung waiting like a puppy in a shelter waiting to be picked, I said to hell with it and now I just refuse AMC work, period. If I am going to go broke, I may as well be a man about it and keep some dignity. Thank God, the Founding Fathers were not Appraisers, because they never would have come together and would have gladly accepted the crums of King George.

  6. If appraisers from the very start would have flipped the bird to the gov/AMC then we wouldnt be in this mess. I have and will never work for an AMC, and I wish every
    appraiser would do the same. My family has appraised for two decades, now some of them are working for peanuts and being treated like bums. No way people, get a spine.

  7. This is the last time I plan to renew my appraisal license in 2010. Since the first of the year 2010 I have completed 18 appraisal reports. In years past I completed 150 reports in a year. Real Estate Appraisal profession is no longer a workable business plan as I never intended to have a (#*&$ing) partner in business.

    Barney Frank and Dodd will create something new in July of 2010. Hopefully, a plan will return to reasonable appraisal fees for appraisers to survive or it the end of the profession.

    My plan is to just sell foreclosures as there will continue to be alot more homes to sell soon. Meanwhile, I will be on my yacht for the entire summer 2010 as I am burnt toast after 22 years in the appraisal business. I have no desire to work with any AMC.

  8. I’m with you on the nonrenewal. My license will arrive at the appraiser’s board coated in feces along with a note telling them that I choose not to renew a license that has far less value than a piece of used toilet paper.

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