Stop Killing Home Values!
The Home Valuation Code of Conduct (HVCC) was implemented on May 1, 2009. The rule was created by the New York Attorney General Andrew Cuomo as an agreement between Fannie Mae and Freddie Mac (GSEs), their new regulator the Federal Housing Finance Agency, and the NY Attorney General’s office. The intent of the rule is to reduce coercion of appraisers; however the rule is overreaching, and has negatively impacted consumers across the country. The HVCC was never reviewed or voted upon by Congress, has failed to follow necessary regulatory procedure, and has the following effects on our income, home values and local property taxes:
1. The HVCC increases costs for those refinancing or purchasing a home. If a consumer changes lenders while shopping for a mortgage, multiple appraisals will be needed.
2. Because lenders are picking out-of-area appraisers to conduct appraisals, the appraisals are inaccurate and are lowering home values. This causes two negative results: it lowers my home equity value even if I am not refinancing a home and, more importantly, these appraisal inaccuracies are lowering the tax base of my community. This requires taxpayers and voters in my area to either pay more taxes or experience reduced funds for schools, roads, and other service expenditures.
3. This single agreement, not voted on by Congress or issued by any Regulatory Agency, is costing consumers billions of dollars and making it harder than ever to refinance or purchase a home.
*We, the undersigned, formally request the repeal of the Home Valuation Code of Conduct (HVCC) due to the detrimental impact it continues to have on consumers across the country.
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