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.
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.