HUD doesn't restrict the appraisal fee. A program called Home Valuation Code of Conduct requires Fannie/Freddie backed mortgages to buffer the mtg originator from the appraiser using a 3rd party agent - an appraisal mgmt company (AMC). The AMC charges the consumer roughly $400-$600 and gives the job to the cheapest appraiser who typically gets about $150. Prior to HVCC the consumer paid roughly $300 and the appraiser got the whole fee. The AMC - which is usually owned by the bank originating the loan - pays the appraiser $150 of the $400-$600 fee and skims the balance for itself. Hence, the bank owned AMC is nothing more than a profit center for the bank.

These $150 appraisers are typically inexperienced trainees who need the hours to become a certified appraisers, which is why they are willing to drive 200 miles to do an appraisal.

Experienced appraisers were forced out of work on May 1, 2009 when HVCC went into effect. It takes 8 hours to turn out an appraisal and $150 does not cover the expenses to perform a credible appraisal report.

Finally, the HVCC was pushed in place by NY Atty Gen. Andrew Cuomo, who was a paid board member of an AMC - and has no jurisdiction outside of NY. It was not put in place to protect the consumer but the further line the pockets of the political elite. Big banks lobbying politicians to force the movement of money into the big bank's coffers on the backs of the consumer.