Sam Schneiderman writes in Boston.com on his opinion of the Home Valuation Code of Conduct (HVCC) six months after it was implemented. In his review, Mr. Schneiderman discusses many of the concerns expressed by the National Association of Realtors (NAR): increased costs to the consumer, pressure on appraisers to complete reports in less time, quality control (specifically geographic competency). Much of this stemming from the use of appraisal management companies (AMC) by lenders. More information on NAR’s HVCC activities can be found here.
“From what I have seen, the cost of many appraisals has increased about twenty to twenty-five percent (presumably to cover the cost of the AMCs involvement)…Some AMCs email all appraisers in a given area and the first one that responds gets the job, provided that the appraiser agrees to complete the appraisal around within 24-hours of the property inspection…By far the biggest complaint that I’ve heard is that most of the appraisers do not know the territory they are appraising in very well.”