Broker Group's President Calls Valuation Code "Dangerous"

The controversial Home Valuation Code of Conduct is "the most dangerous thing facing the housing finance industry today," NAMB president Marc Savitt warned at the NAREE conference. He called the HVCC "a train wreck" that will "cause another collapse of the housing industry if something isn't done" to stop it. The NAMB leader said that because most lenders are using appraisal management companies to comply with the new rules, the cost of a valuation has doubled, as has the time it now takes to get one completed. He also maintained that in many instances, the quality of appraisals is poor. And he charged the some appraisal management companies are owned and operated by former subprime lenders. The result, Mr. Savitt told the housing editors, is that borrowers are being overcharged to the tune of $2.8 billion a year. "That's not acceptable," he said. "Consumers are tired of paying for the mistakes and government and the industry."