BAKERSFIELD, Calif. -- New rules to prevent loan officers and real estate agents from influencing appraisers in inflating home prices has many people in the industry saying it's a step in the wrong direction.

As of May 1, all Freddie Mac and Fannie Mae mortgages must comply with the Home Valuation Code of Conduct or HVCC, which is new legislation intended to prevent mortgage fraud.

Gary Crabtree, a long-time appraiser and owner of Affiliated Appraisers, has been working directly with lenders for close to 50 years now. But that relationship has changed because of the HVCC.

The new code prevents loan officers and real estate agents from having contact with appraisers, requiring them now to go through a middle man or appraisal management company.

The management company then contracts appraisers out for less money.

If the new code stays in effect, Crabtree said he may have to close up shop.

"There are many fine appraisers out there who are expressing the same concerns. Obviously if it cost me $172 to do an appraisal and I'm only getting $200, $230 dollars certainly I can't make a living because that's before taxes," said Crabtree.

Billy Thompson, a mortgage broker for CPFinancial said the new regulations can end up a disaster for the home industry. He has come up with a petition to send to lawmakers in hopes they reconsider the HVCC.

"We are seeing unlicensed and inexperienced individuals performing property inspections with grave data-entry errors," said Thompson.

Thompson said under the new code, these appraisals are not being regulated. Home buyers can expect to pay more in fees and look and a slow turn-around time.

"When you take this HVCC aspect and these appraisal management companies, those people do not have to be vested or involved in their communities. They don't even have to know their communities. That cannot be good for our industry," said Thompson.

Thompson also said because many of these appraisers are coming from out of town, they are undervaluing properties, slowing market recovery.

"To change this thing, is someone in Washington will be out buying a home helping to try and buy his kid a home and he's going to have to find this headache. He's going to have to go through which is our industry now and it's not until then that our industry will get back to some reality, and the reality is this is not working," said Thompson.