And The World Changes

For most of the entire history of the relocation industry, it has been the practice of the industry to have the appraisers confirm their data with the local real estate broker. That all changed as of May 1, 2009. Effective on May 1, the terms of the Home Valuation Code of Conduct were implemented following an agreement between New York State Attorney Cuomo and Freddie Mac and Fannie Mae. Under the new code, communication between appraisers, real estate agents, loan officers or mortgage brokers must be conducted through an appraisal management company which have been added as a new middleman in the process. The National Association of Mortgage Brokers, which is trying to get it repealed, estimates that the new code is costing consumers $2.8 billion dollars in extra fees annually. The process essentially circumvents the communication stream between all parties in the process.