The Home Valuation Code of Conduct (HVCC), an agreement between New York Attorney General Andrew Cuomo, Fannie Mae, Freddie Mac and the Office of Federal Housing Enterprise Oversight (OFHEO), is designed to address issues of appraisal coercion and independence. The intent of the HVCC is in the right place. There is need for sound appraisals that are free of any influence or coercion on the part of the lender or any other party.

However, the current version is actually a big step backward for consumers. It creates less quality and fairness, and consumers will no longer have access to accurate appraisals from independent appraisers.

HVCC must be fixed before it goes into effect. You can take action by contacting Congress and urging them to revise the HVCC to:

• Create a level playing field -- Require all entities involved in the appraisal process to adhere to the same standards and restrictions. 
• Remove language that effectively mandates the use of national appraisal management companies instead of local independent appraisers
• Require an independent appraisal for loan originations