The code was originally designed to protect appraisers from pressure to inflate their home valuations because such actions helped fuel the housing bubble and resulting bust.  But realtors, mortgage brokers and builders have charged that one result of the code has been an increase in below-market valuations that have killed sales and further slowed already moribund housing markets.  A recent survey from the National Association of Realtors reported that 20% of it’s members claimed to have lost at least one deal due to low valuations.  Right now, the HVCC bans loan officers, realtors, mortgage brokers and builders — anyone, basically, whose compensation depends on home sales — from ordering appraisals or exerting undue influence on appraisers.  And mortgage giants Freddie Mac and Fannie Mae won’t back any loan that doesn’t comply with the HVCC standards.  Everyone agrees that’s a noble goal and one that should  be maintained, but there is a lot of room for confusion and misinterpretation of the guidelines.  Real estate professionals are scared they’ll be accused of violating HVCC, which can impact their bank accounts.  If a mortgage loan does not follow HVCC guidelines, neither Fannie nor Freddie will buy it or guarantee it.  That essentially kills the deal — and any commission — because there’s virtually no operating secondary market for loans not backed by those agencies.  John Howard, the CEO of  NAHB, would like to see a new set of guidelines, done in a frequently-asked-questions format, that more explicitly spells out the rights and responsibilities of everyone involved.  That way, a home builder would know exactly how much input he could give to appraisers without going over the line.  This would be especially helpful to those operating in areas where foreclosures are predominant.  These are hot zones for strife between realtors and appraisers as they try to determine what qualifies as a comparable home sale on which to base valuations.  “To say a house that needs $200,000 in repairs to make it livable should appraise at the same level as a new house next door is ridiculous,” said Howard.  “Right now, using these foreclosures as comparables without adjusting for condition can go unchallenged.  Realtors and builders want to be able to discuss why homes were valued at a certain level and show other comparables without  fearing violation of HVCC.  (CNNMoney.com)  What do you think?