HIGHLIGHTS FROM THE HOME VALUATION CODE OF CONDUCT
"No employee, director, officer, or agent of the lender, independent contractor, appraisal management
company, or partner on behalf of the lender, shall influence or attempt to influence the development
of an appraisal report."
Appraisers are protected from:
- Withholding or threatening to withhold timely payment
- Withholding or threatening to withhold future business, or to terminate or demote
- Express or implied promise of future business, promotions, or increased compensation
- Removal from an approved appraiser "list" without written notice; notice must include
written evidence of illegal conduct or USPAP violations
Lenders Cannot:
- Request a pre-determined value
- Provide a "desired value" to appraiser
- Provide a "proposed or target amount to be loaned" to appraiser
- Provide comparable sales to appraiser
- Provide stock or other financial or non-financial benefits to appraiser, AMC, etc.
- Get a 2nd appraisal unless the first appraisal was flawed or tainted (Lender must
document file), unless done as a review or post-funding function
- Accept any appraisal completed by an appraiser selected, retained, or compensated in any manner
by mortgage brokers and real estate agents
- Utilze any appraisal report prepared by an appraiser employed by:
- the lender
- an affiliate of the lender or an entity that is owned by the lender
- an entity that owns the lender
- a real estate "settlement services" provider (as defined by RESPA), or
- an entity that is owned, in whole or in part, by a "settlement services" provider
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