I've read it. Here's my take on the upcoming regulation: The ‘new’ Home Valuation Code of Conduct (HVCC) is guaranteed to pi$$$ off many appraisers, industry participants, and will make others ecstatic. On balance, in my opinion, it is acceptable to returning our profession to what it should be….mandating independent unbiased opinions of real estate values provided by competent appraisers who fully respect the responsibility for doing so, and adhere to USPAP and other requirements. The actual HVCC document does not contain the implementation date, which has been identified by other sources as May 1, 2009. The HVCC applies to any loan purchased by the GSE’s….Fannie, Freddie, and presumably, Ginnie Mae. In practice, I suspect ‘in house’ loans from local and regional banks will be managed using the HVCC, separating ‘loan production’ staff from the appraisal ordering function. Here’s my quick overview: 1-‘Comp Checks’ are forbidden Pre-stating ‘value needed’ is forbidden (However, sales contracts must be provided for properties being purchased; this does not mean the appraiser must concur with the purchase price!) 2-Appraisers cannot be put on an ‘exclusionary’ list unless illegal or out of USPAP compliance work is submitted; then they must be notified in writing 3-AMC’s are NOT a mandatory entity for ordering of appraisals as long as separation of loan production is isolated from appraisal ordering 4-GSE’s will not purchase loans that are from AMC’s in which any lender has an ownership interest unless the entity has written policies and procedures that implement the HVCC provisions of appraiser independence 5-Mortgage Brokers and RE Agents cannot order an appraisal from any appraiser; lenders cannot accept any appraisal directly ordered from them 6-Loan production staff cannot have ‘substantive’ communications with the appraiser 7-Lender is ultimately responsible for paying the appraiser’s fee; no fee for service can be withheld regardless of the value reported or outcome of the loan 8-An Independent Valuation Protection Institute (IVPI) will be established [funding for same not mentioned] which will become a reporting agency for HVCC violations 9-Lenders may use in-house appraisers as long as their assignments comply with the HVCC in terms of assigning work 10-A minimum of 10% of appraisals (and ‘valuations’) will be randomly selected and “tested” 11-The HVCC does not mandate any particular valuation method, i.e., appraisal, AVM, evaluation, etc. in connection with any mortgage loan or mortgage financing transaction There are more details within the HVCC document, but these are the highlights that affect appraisers. There will be much written by appraisal publications and the various web forums and appraiser associations over the next number of weeks before the May 1, 2009 implementation date.