From the Inside Bay Area.com article by David Morrill Staff Writer - Appraisers brace for industry change -
On May 1, a new code of conduct, the HVCC (Home Valuation Code of Conduct) is scheduled to be implemented with the intent that it will isolate the appraisal process of loans purchased by Fannie Mae and Freddie Mac from bias. Loan production personnel, including mortgage brokers, will no longer be able to order the appraisal or influence the choice of appraiser.
Ann O'Rourke, publisher of Appraisal Today, and an appraiser in Alameda, said that when you're an appraiser, there's always a sense of pressure. You learn to live with that.
The article continues -
Technically, loans not sold to Fannie Mae and Freddie Mac are not subject to HVCC. But it's possible that a lender might send all types through the same process to protect perception of fairness. This could cut mortgage brokers out of the loop even more.
On May 1 appraisal management companies (AMCs) will take many of the orders from lenders and find appraisals. The loan production staff will be unable to contact the appraisers. An AMC will use its own selection process that might be based on specific metrics or more random.
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