Florida Mortgage : Learning Center

Legislation has finally been introduced calling for an 18 month moratorium on the Home Value Code of Conduct, HVCC.  Many homeowners or would-be home buyers, seeking a Florida mortgage, have incurred much higher appraisal costs from appraisers with very little experience or knowledge of the local area.

Since the HVCC began on May 1st we have seen Florida home buyers order an appraisal from a newly licensed appraiser who depends on a trainee, to research comparables in counties so far away that competency becomes a question.  Then when the appraisal comes in so far under value (on purchase contracts) buyers order independent appraisals form local experienced appraisers.  And finally

The HR 3044 doesn’t stop the HVCC issue from forcing lenders to use inexperienced and distant appraisers but should give consumers and mortgage professionals enough time to contact members of Congress to remove the  HVCC completely.

I am all for sound unbiased residential appraisals.  But when the HVCC allows appraisal management companies to bid out the jobs something is wrong.  If a consumer pay $400- $500 for an appraisal that used to cost $300; and the appraisal management company then hands the job to the lowest bidder – you get a cheap, worthless appraisal.  All at the consumers expense.  Not fair Cuomo! 

We need to allow our local professional career minded appraisers to have their jobs back and do their jobs.  

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