The nation's largest organizations of professional real estate appraisers – the American Society of Appraisers (ASA), the Appraisal Institute, the American Society of Farm Managers and Rural Appraisers, and the National Association of Independent Fee Appraisers – have issued a statement in reaction to the revised Home Valuation Code of Conduct (HVCC) released by the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac.
The groups say they are studying the revised code to study its impact on the appraisal industry. They commend the FHFA and government-sponsored enterprises for increasing appraisal independence, but note their concern over provisions in the code that permit mortgage lenders to avoid use of professional appraisals.
‘Like much of the mortgage industry during the years that led up to the current housing crisis, these entities are unregulated,’ the statement says. ‘Further, the current business model of many appraisal management companies places appraisal quality last, while shifting the cost of appraisal management services to the consumer without any disclosure.’
‘When valuations lack credibility, homeowners and taxpayers can be put at significant risk,’ says Jay Fishman, a fellow of the ASA and chair of the ASA's Governmental Relations Committee. ‘We intend to work with the Fannie Mae, Freddie Mac, their regulator and Congress to improve the HVCC.’
SOURCE: American Society of Appraisers