It’s ironic that the government and media claimed that the Home Value Code of Conduct (HVCC) was needed because mortgage brokers put pressure on appraisers to “hit” value.
In reality, lenders started requiring desk reviews and underwriters started pulling their own AVMs (Automated Valuation Model) from their desk at least 2 years prior to the HVCC going into effect. Here’s the ironic part, lenders started doing their job! The underwriter is supposed to determine the risk on every file and that includes the appraisal.
Now statistics show that since the implementation of the HVCC, appraisal fraud has increased by 46%!
