The Home Valuation Code of Ethics, more properly called the “Home Valuation Code of Conduct” (HVCC), was an industry agreement between the State of New York and Fannie Mae/Freddie Mac that governed how lenders ordered appraisals for home loans.

HVCC Caused Confusion

The HVCC was well intentioned as it was supposed to reduce the incidence of appraisal fraud and pressure on appraisers to “hit” a certain value so that the lender could make the loan. However, the code caused confusion and problems for real estate brokers, appraisers, lenders and home buyers.

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