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Who enforces the HVCC?

Fannie Mae headquartersThe Home Valuation Code of Conduct (HVCC) between lenders and appraisers went into effect June 1st. There’s been many comments about how real estate transactions have been affected in the last month. But when there’s a problem with someone not following HVCC guidelines, where is a complaint filed?


That’s right, nobody currently enforces the HVCC. An entity called the Independent Valuation Protection Institute (IVPP) handles complaints. According to the code:

An Independent Valuation Protection Institute (Institute) shall be created as approved by the parties. Subject to section IX, when the Institute is established, the lender will provide information to appraisers and borrowers regarding the availability of the Institute’s services, which are expected to include: (1) a telephone hotline and email address to receive any complaints of Code of Conduct non-compliance, including complaints from appraisers, individuals, or other entities concerning the improper influencing or attempted improper influencing of appraisers or the appraisal process, which the Institute will review and report as provided in IV.B(8) and IV.C(2) of this Code of Conduct; and (2) the publication and promotion of best practices for independent valuation. The lender shall not retaliate, in any manner or method, against the person or entity that makes a complaint to the Institute.

But one month later, it still doesn’t exist. Even Fannie Mae and Freddie Mac acknowledge this fact:

The structure of the IVPI has not yet been determined and the IVPI has not yet been established. Therefore, the provisions regarding it in the Code are not yet effective.

So right now HVCC regulation is like speeding on the Autobahn – there’s nobody to tell you not to do it.

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As the son of two music teachers, Ben spent his first 21 years trying to make a living with his slightly above average trumpet playing. After no return calls from Dizzy Gillespie and then a failed attempt at becoming a fly girl on "In Living Color," he switched gears and finally found his nichè in real estate. He's a Minnesota appraiser and also a Realtor with his better half, Stacia. Labeled “one to watch” from an anonymous source (thanks mom), Ben is smart, good looking, athletic and a rock star inside his own head. He also never passes up a chance to write his own bio. Find him online at twitter or selling Stillwater Real Estate.



  1. Jim Duncan

    July 3, 2009 at 7:31 am

    So … fear, ignorance and blind assumptions are enforcing the HVCC?

  2. Lani Rosales

    July 3, 2009 at 10:53 am

    are you KIDDING? what a joke!

  3. Joe Loomer

    July 3, 2009 at 10:59 am

    @Lani – thanks for Facebooking this so I’d come read it.

    Explains why the NAR prez went to New York to speak directly to the Assistant Attorney General, then went to DC to lobby lawmakers to change the rules.

    The “pending sales” index – used by many talking dumba…. I mean talking heads to tout a recovery, is simply a crock because of the HVCC and appraisal issues. When sales continue to slump and pending sales continue to go up, the only possible reason is appraisals are causing more and more failed contracts.

    Oh, and:

    “the Institute will review and report as provided in IV.B(8) and IV.C(2) of this Code of Conduct;”

    To whom??

    Navy Chief, Navy Pride

  4. Frank Gregoire

    July 3, 2009 at 10:51 pm


    The HVCC (they meant for the acronym to read “HAVOC”) actually became effective May 1, 2009.

    Don’t hold your breath waiting for the IVPI. As you know, it’s supposed to be funded by Fannie and Freddie and they’re just a little short of liquidity right now.

    Our best bet is H.R. 3044, the bill that requires an 18 month moratorium on the HVCC.

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