1. Code of Conduct. The Center has defined certain activities
and actions that, if engaged in by a person or entity involved
in the residential real estate industry, would most likely
result in the improper increase or decrease of appraisals
or valuations conducted pursuant to residential mortgage lending.
Any person or entity that violates the Code of Conduct may
have a complaint filed against it by a Signatory. An action
of Improper Influence and/or Improper Retaliation (as each
are defined below) would result in a violation of the Code
of Conduct.
1.1 "Improper Influence" is defined as any action
or actions that, in consideration of the circumstances,
would reasonably be expected, on any appraisal or valuation,
group of appraisals or valuations, or future appraisals
or valuations, to increase or decrease an appraiser's, appraisers',
valuation management firm or firms, valuation result or
results other than to achieve the most accurate and honest
value. (Hereinafter sometimes collectively and separately
referred to as "Improper Retaliation"). It also
includes any action that is intended to influence another
person or entity to Improperly Influence a valuation or
appraisal. This specifically includes any direct, indirect
or threatened Improper Retaliation as described below, including,
but not limited to:
1.1.1 Reducing the amount of or remuneration for valuation
services;
1.1.2 Changing the payment terms for valuation services;
1.1.3 In any method penalizing or harming the business
of any valuation professional;
1.1.4 Affecting any terms of employment, compensation,
promotion opportunities of any employee, agent or contractor;
1.1.5 Offering any reward of additional business or greater
remuneration for business;
1.1.6 Cancellation of a valuation order;
1.1.7 In any other direct or indirect manner coercing
a valuation professional to breach his or her professional
Code of Ethics in order to obtain valuation results desired
by any other person or entity.
1.2 Improper Influence shall also occur when, at such point
as the appraiser or valuation manager feels uncomfortable
with further debate or communication with any other person
or entity as to the valuation result, and communicates same;
that other person or entity does not cease such communication
and allow the appraiser or valuation manager to complete
the valuation or appraisal in such manner as the appraiser
or valuation manager, in its sole discretion, feels is appropriate.
1.3 Improper influence, however, specifically does not
include the following ("Permitted Activities"):
1.3.1 The submission to the appraiser of comparable sales,
pending sales or listings that, in good faith, is believed
will lead to a more accurate value conclusion
1.3.2 A discussion with an appraiser as to market trends,
comparable adjustments, the utilization of comparables
or other matters that are included in the appraisal or
valuation that, in good faith, is reasonably believed
will lead to a more accurate value conclusion, provided,
however, that the person in such discussion does not,
along with the permitted activities, directly, indirectly
or by threat, Improperly Influence the appraiser or valuation
manager as described above.
1.4 It is acknowledged and understood that the opinion
held by parties who solicit and receive appraisals and valuations,
concerning the performance of those who perform those functions
is their right and privilege. It is further acknowledged
that the choice of appraisers and decision as to the appraiser's
performance may often be influenced by the opinion of others,
including a Lender, Broker, Valuation Management Firm or
other similar persons or entities. It is not improper for
such persons or entities to express an opinion as to the
appraiser's performance or conduct provided that such expression
does not, in any way, result in:
1.4.1 An appraiser improperly modifying an appraisal
result; or
1.4.2 A lender choosing to use or not to use an appraiser
based upon its value conclusions not being sufficiently
high to meet the desires of the agent or customer
