Which party is subject to the Home Valuation Code of Conduct (HVCC) regulations?

The Home Valuation Code of Conduct (HVCC) was established to promote transparency, reduce conflicts of interest, and ensure the independence of appraisers in the mortgage lending process. The regulations primarily apply to entities that are involved in the lending process, including conventional loan issuers. These loan issuers are responsible for ensuring that the appraisals for the properties they finance adhere to the standards set forth in the HVCC. This was designed to protect consumers by requiring that appraisers provide unbiased valuations that are not influenced by parties with a financial interest in the transaction.

Property appraisers themselves must comply with these regulations; however, the regulations are enforced on the lending entities that hire them. Real estate agents and homebuyers are not subject to HVCC; their roles do not include the regulatory responsibilities related to the appraisals used in securing loans. Thus, the focus of the HVCC regulations is on conventional loan issuers who must adhere to these guidelines to promote fair practices in real estate financing.