In 2009, in the wake of the financial crisis and several lawsuits, then New York Attorney General Andrew Cuomo, Fannie Mae and Freddie Mac, with support from the Federal Housing Finance Agency, developed a set of appraisal rules called the Home Valuation Code of Conduct (HVCC). These interim rules were established to create independence – to eliminate undue influence by separating parties with a financial interest in a mortgage loan transaction from appraiser selection and retention.
Although no longer in force, HVCC did influence the creation of important Appraiser Independence rules in the 2010 Dodd-Frank Wall Street Reform (Dodd-Frank) and Consumer Protection Act. No party “shall influence or attempt to influence the development, reporting, result, or review of an appraisal through coercion, extortion, collusion, compensation, inducement, intimidation, bribery, or in any other manner.”
REVAA members comply with federal AMC rules and subsequent state AMC licensing programs (all 50 states plus Washington, D.C.) that mandate appraiser independence. AMCs adhere to strict policies to ensure compliance by employees and vendors.