You are currently browsing comments. If you would like to return to the full story, you can read the full entry here: “HVCC: Appraisal Rules Are Posing a Challenge”.
You are currently browsing comments. If you would like to return to the full story, you can read the full entry here: “HVCC: Appraisal Rules Are Posing a Challenge”.
Joe that’s called the cost approach that we already use in an appraisal my uninformed realtor mental midget. That is not MARKET VALUE!
From the sounds of the “better, more experienced” appraisers in this thread they are the ones doing all the out of area work. 90% of the “better more experienced appraisers are accepting the low fees. So they are going to give you low fees what the **** do you expect? Stop whining for God’s sake and do not accept the low fees. You all sing about free market capitalism so what do you think is going to happen if you cannot turn down a cheap order? YOU ARE GOING TO KEEP GETTING CHEAP ORDERS!
In reference to the new Appraisal rules closings and financing are driving us up a wall. Due to lack of communication, Appraisals are not scheduled with in time limits, nor (with new homes and Bank owned) they are not checking with Agents as to Utilities being on even when they are given numbers for agents. Also we now need to have time limits up to closing date.
This is costing us closings and clients money.
Yet another government solution that is anythng but a solution. Not only unexpected consequences, but not solving the original problem and going overboard. ( and isn’t this the same government that wants even more control over our healthcare and the process to get it? )
Look at the listing prices of properties and then look at the sales prices of the same properties and then tell me about bad appraisals.
Offers being accepted for 10, 20, 30, 40 and 50% less than listing price, and then the appraisal is in question.
Give me a break.
Many of you need to realize that the authors of the HVCC were NOT appraisers, everyone on board were Bankers, AMCs, Secondary Market execs -did you see me type an appraiser?…NO NO Not one we need a loud voice! We werent invited to the table to explain the plight and consequences.
The HVCC’s were around when the industry was ripe with fraud, they are here now, what is wrong that picture? They are still using the inexperienced , “yes man” appraisers. Still pulling the strings.
It seems like only a few months ago that appraisers were being blamed for the housing bubble bursting due to inflated appraisals. Now appraisers are being blamed for hindering the recovery of the housing market because they won’t inflate appraisals. Soooo, which is it??? I say pick a position and stick with it. Those who are complaining about low (realistic) appraisals and can’t contact the appraiser to discuss (pressure) the appraisal who’ve had their “cheese moved” ought to read the book “Who Moved My Cheese” and learn to do business in the new RE environment, we’re not ever going back…
When an appraisal comes in less than it cost to rebuild and less than what the insurance industry deems (required coverage) – there is a problelm. No doubt about that. Now that we know there is a problem, let’s look at how to fix it.
Given the task at hand, wouldn’t it seem an intelligent decision to have the appraisers come up with a plan, present it the various stakeholders. How about this – give them a timeline 90 days PERIOD. REVIEW time 30 days. No salary, no benefits until its resolved. Come on lets have some incentives to get the job done.
We all are attempting to feed the economy. As they would say in Brooklyn “cut the crap and get it done already”
There is something very wrong when you get paid less to do more work.
I agree the appraisers should be very familiar with the area in which they are working! ! I was involved in a Short Sale where the bank sent an appraiser from over 150 miles or more from our area. He went though the motions of his appraisal & valued the home at the exact amount as a home just put on the market ,when on the next street a property just like my listing had been for sale for a long time and was listed more than six thousand dollars less!! This amount could have just made the difference in closing the deal or having it all fall apart at the last minute!! Esp. when it has so hard to qualify client .
I just found out today that a house that I have under contract for $405K came back with an appraisal of $247,000!!! That is so ridiculous. I have had three offers on the house (I’m a Realtor) in excess of $375,000 within the last two months. My sellers will not be able to sell this house, since they owe $360,000 on it. I am so frustrated and these appraisers really do not know what they are doing!
Gloria Singer
Lang Realty
Boca Raton FL
Liz Iaconetti says:
August 15, 2009 at 8:15 pm
“When an appraisal comes in less than it cost to rebuild and less than what the insurance industry deems (required coverage) – there is a problelm. No doubt about that. Now that we know there is a problem, let’s look at how to fix it.”
Liz,
Why don’t you explain to everyone how that is a problem? Can you back up that claim with some usefull information besides the usual drivel? How is it that you think that when the appraisal comes in lower than the cost approach (which is part of the appraisal by the way) that there is a problem? I would love to hear any responses from the realtor “pros” on this one.
Gloria Singer says:
August 16, 2009 at 11:54 pm
I just found out today that a house that I have under contract for $405K came back with an appraisal of $247,000!!! That is so ridiculous. I have had three offers on the house (I’m a Realtor) in excess of $375,000 within the last two months. My sellers will not be able to sell this house, since they owe $360,000 on it. I am so frustrated and these appraisers really do not know what they are doing!
Gloria Singer
Lang Realty
Boca Raton FL
Wow you guys like to yack alotbut you obviously have attention deficit disorders and are unable to listen over 3-5 seconds. I give up.
George hit the nail on the head when he stated that experienced (intelligent) appraisers have or are leaving the business to the inexperiened. In time even the inexperienced will be forced to concede that they are not turning a profit but rather paying to work in the business. They essentially have 4 options: 1) Take their losses and close their businesses, 2) Live off of the good graces of a spouse or family member, or 3) Come face to face with the cold hard facts of reality vs wishing (bankruptcy court should do the trick).
If you are a residential appraiser, don’t waste your time wishing that things will change for the better. Invest your savings in another venture (preferably one the government cannot ruin) and get out of this flea bitten business.
This whole mess with appraisals come from years of greed on and mismanagment with regard to lending practices. As per the norm, once our goverment does react ,it overreacts and creates a quandrey of rules and scare tacticts to get the system in line. It has now forced good appraisers into situations that they are afraid to do the job that they were hired to. It has put the sellers of properties in conflict with their realtors with regard to pricing the home correctly for the market. We all know that there are gray areas with pricing a home, however, a good agent will demand good information before they price and list a home. If we have to throw money at something, throw money into local, regional inspectors that monitor home pricing. This will give the appraisers a fair chance of being accurate and not presured and will weed out the ones that are not concerned for the well being of an area they are not familar with. There is entirely too much inconsistancy in the appraisal field and this would tighten up the field a bit.
Hi guys and gals:
Know one thing—-the market value of the properties you list has nothing to do with
(1) how much the home owner owes on the mortgage
(2) What the property is listed at
(3) what the contract between the parties stipulates .
(4) the # of offers you have on the property
(5) etc,etc,etc.
SO———stop getting fustrated and angry and discouraged and fed up with the appraisers. Their research and analysis of the market activities in the neighborhood point them in the direction of the value.
It is amazing at the context of some of these messages. In a nutshell, BLAME THE APPRAISER!! I am a Certified Residential Appraiser going on my 19th year. As with RE agents, the first few years are spent developing relationships, trying to get clients, Hitting the sidewalks, banks, credit unions, whatever it took to “sell yourself”. I have had many good years as an appraiser, some even lucrative. I have enjoyed the people that I “worked for”, although not as an employee, knew specific likes and dislikes the lenders or banks wanted indicated in the verbage of the report, ie: “the sales appear to have been arms length transactions”, or “The net and gross adjustments are within FNMA guidelines”. I knew who wanted what and did the best reports I could for them. There was never pressure, never threats and the estimated value was it. Period. They never called to complain. They believed I was professional enough to know what I was doing, used the same MLS system the agents and brokers do, and I am sure there were times, if unhappy, most likely reordered through another appraiser that was more
“aggressive”! Now, with the HVCC being implemented, I have lost all those clients. Each one I developed relationships with (not personal), ones I had for over 15 years, clients who knew they would receive an appraisal with all their requirements (requests!) and now…………..POOF!! They are all gone. Had to find AMCs to work with and hope to receive enough orders to survive. Since May 1, my work is down by approximately 80%. Not too good for paying bills. I am sure some agents are upset when a number is not “hit”, but be on our end. Would you like to have all your clients taken away?? Told you could not talk to anyone?? Given 4 or 5 clients a month instead of 25-30?? Lose all the clients you have gotten to know over the years and most likely have sold them all their homes and listed their homes and maybe their family members?? Would you like more paperwork added to what you have done for years, then be told you will receive less money because the AMCs need a percentage? How many agents and brokers would tolerate this? Or any profession for that matter?? Yet, appraisers were what I feel “punished” for things that were never appraisal issues to begin with. Clinton wanted SubPrime Lending. Loan originators falsified w2s so people appeared as though they could afford the home. And…….I know some appraisers “hit numbers” to appease their clients. But now, all of us are blamed and were made to follow new rules they may cause many appraisers to seek other work, work two jobs, whatever it takes to survive. Complain all you want about appraisers ruining deals, having low values………what’s the saying….Walk a mile in OUR shoes……
I have been a certified appraiser in the state of Massachusetts for almost 20 years. Over the past year, mortgage originators were required to become licensed by the state. The fallout rate was approximately 60% due to failed backround checks. The #1 reason was for insufficient credit scores. The #2 reason was, you guessed it, felony convictions!!
As I understand it, the HVCC was created by the New York Attorney Genaral’s office as some type of plea deal with a national lender and a national AMC (Appraise IT) to avoid prosecution for mortgage fraud. As a result of this deal, mortgage companies are required to use AMS’ or other “buffer: groups to insure appraiser independence and to avoid pressure to inflate values. The entire cost of these entities has been passed on to the appraisal industry through substatially lower fees for the appraiser and higher fees to the consumer. No contributions from the lenders that we bailed out. Try that with the Teamsters. I work with AMCs’ for a portion of my business and have found that several are calling me back and requesting higher values to make the deal work. Sound familiar? The AMCs’ are an unregulated group and appear to conduct themselves as an advocate for the lenders. This is reform? Give me a break!
If the use of AMCs’ as part of reform is to work, they need to be regulated the way that appraiser’s and realtors are. The state of Arizona has done this and appears to be on the right track.
Get back to work on this and get it right New York!! You are the New York Attorney General’s office, not the New York Yankees!!
James, feel free to weigh in at any time!
A home value should be based on whatever somebody is willing to pay for it, not the opinion of an individual. Inspections are there to protect the buyer from unseen damages and concerns. It’s ridiculous that individuals are dictating the price of homes.
James says:
It seems like only a few months ago that appraisers were being blamed for the housing bubble bursting due to inflated appraisals. Now appraisers are being blamed for hindering the recovery of the housing market because they won’t inflate appraisals. Soooo, which is it??? I say pick a position and stick with it. Those who are complaining about low (realistic) appraisals and can’t contact the appraiser to discuss (pressure) the appraisal who’ve had their “cheese moved” ought to read the book “Who Moved My Cheese” and learn to do business in the new RE environment.
James,
Learn your history and get your facts straight. HVCC was created as a backlash against Washington Mutual pressuring Appraisers (at the corporate level) to inflate appraisals. NY sued WAMU and Cuomo started pushing for HVCC.
The inherant problem and oxymoron with HVCC, is that all of the Major Banks OWN the Appraisal Management Companies (AMC). Ergo, they get to choose their appraisers and then pressure the AMC to up the value if needed. Sound familiar? The independent mortgage brokers arent allowed to own an AMC and have to use whoever the lender tells them to which leads to inexperienced appraisers setting the values and getting a rubber stamp by a minimum wage clerk.
HVCC can be repealed, you all just have to get off your A**es and call your Congressman and Senator and pressure them.
Checkout: http://www.hvccpetition.com/ to read more stories of these “Realistic” AMC fubars.
Regarding AMC’s….Why are the appraisers the only ones who take a pay cut? Why isn’t some of the cost to hire the AMC absorbed by the mortgage company? No one has been able to anser this question for me. It’s completely unfair.
I was an extremely ethic and professional Certified Residential Appraiser with 11 years of experience and many clients nationwide. I got out of appraising 10 months ago for a better opportunity. It’s a shame what is happening. Although this mortgage crisis was completely predictable, nothing was done about the fraud until the bottom dropped out. Too bad there weren’t more proactive actions taken to prevent all this lender fraud. Greed, greed, greed. Glad I’m not directly in it anymore, but indirectly we are all affected.
[...] Realtor.org – HVCC Rules Are Posing A Challenge [...]
I bought a bank owned property in Dec 2008 (on the market, not short sale or courthouse)and self financed 40K worth of renovations on the home. For the last six weeks, I have been battling with Wells Fargo Mortgage about the newly appraised value of the home (done by a local licensed real estate appraiser chosen by the lender)
Now I have an appraisal value, a bank underwriter determined value, and a tax assessor value all of which are at least 30K apart from each other … WHAT GIVES?
The bank underwriters have unilaterally deemed the house to be worth 63K less than what the appraiser valued the home in july (with strong comps in the neighborhood including one comparable sale on the same street within 1 week of the appraisal.)
I am not sure if appraisers have been in cahoots with banks, but it seems to me we also need to examine what the bank property underwriters are doing (they seem to want to be holding on to that tax payer cash they got last year!
I agree with the Sept 1st comment. The Underwriters are holding us hostage.
An investor buys this subject home from the Bank; which was listed with a Realtor for $9,900.00
Investor pays $16,000.00 after all the bidding wars are over. He re-vamps it to the tune of $25K or so in improvements. He puts it on the market For Sale By Owner for $59,900.00 (going prices in the neighborhood is $50-$70K). My buyer clients and I present our offer to buy the 5 bedroom home for $59K. 30 days have passed, closing day went by and an extension has now been put into place. PROBLEM: the Underwriter can not accept the fact that the investor paid $16K for it in Feb of 09 and is selling it in July 09 for $59,000. Seller had to itemize each and every improvement made, supply Underwriter with receipts for carpet, paint, shingle, ply wood, drywall, etc etc….This is an FHA deal, appraised for $60K now the Underwriter has ordered ANOTHER APPRAISAL which made my FHA buyer client shell out another $350 for the 2nd one. My problem is….why is the Underwriter waisting our time with a 2nd appraisal for something that happened one Seller ago?? My buyer client was to get the keys Aug 28th, is living out of packed boxes and is waiting her fait by the Underwriter. I have never seen such a mess and how afraid everyone is to declare value. What a crock!
[...] Realtor Magazine [...]
James says:
It seems like only a few months ago that appraisers were being blamed for the housing bubble bursting due to inflated appraisals. Now appraisers are being blamed for hindering the recovery of the housing market because they won’t inflate appraisals. Soooo, which is it??? I say pick a position and stick with it. Those who are complaining about low (realistic) appraisals and can’t contact the appraiser to discuss (pressure) the appraisal who’ve had their “cheese moved” ought to read the book “Who Moved My Cheese” and learn to do business in the new RE environment, we’re never going back…
Brusbob says:
Learn your history and get your facts straight. HVCC was created as a backlash against Washington Mutual pressuring Appraisers (at the corporate level) to inflate appraisals. NY sued WAMU and Cuomo started pushing for HVCC. The inherant problem and oxymoron with HVCC, is that all of the Major Banks OWN the Appraisal Management Companies (AMC). Ergo, they get to choose their appraisers and then pressure the AMC to up the value if needed. Sound familiar? The independent mortgage brokers arent allowed to own an AMC and have to use whoever the lender tells them to which leads to inexperienced appraisers setting the values and getting a rubber stamp by a minimum wage clerk. HVCC can be repealed, you all just have to get off your A**es and call your Congressman and Senator and pressure them.
Brusbob:
I don’t recall mentioning the HVCC once in my post (included above)…nope, just re-read it and sure enough the HVCC isn’t mentioned once…
I also noticed something in your post that troubled me, you said: “…appraisers setting the values…”. Appraisers don’t SET values, they REPORT opinions of value. I wonder if this fallacy is part of the increasing disconnect between RE professionals?
Re: the relationship between AMC’s and the HVCC…I completely agree that AMC’s have diluted the theory behind the HVCC. My personal belief is that a set of rules that creates a buffer between interested parties (those who stand to gain from a pre-determined opinion of value) and the appraiser is a good thing. The problem with the HVCC, in my humble opinion, is in the implementation.
So, that leads me to another question, if the current HVCC isn’t effective and we certainly cant go back to no ‘firewall’…shouldn’t we all be using our brilliant minds to propose new ideas to alter the current HVCC or create a new HVCC that does work???
THIS IS ONE ,I HAVE A REFINANCE CLIENT PAID 135,000.00 FOR THE PROPERTY IN 2007 AND THEY WAS $6000.00 IN UPGRADE. THERE WERE TWO PROPERTY SOLD IN THE SAME AREA . THEY SOLD IN 2008 FOR 127,500. AND THE NEW APPRAISAL CAME BACK WITH A 127.500.00 VALUE. ALLTHOU THE APPRAISAL SAID THAT THE MARKET AREA WAS NOT IN A DECLING MARKET. SO WHY DID THE APPRAISAL COME BACK AT 127,500.00 VALUE .SOMTHING IS WRONG WITH THIS .ALSO THE APPRAISAL WAS 120 MILES FROM THE AREA .THIS IS A 1HOUR 45 MINUTES DRIVE ONE WAY.
I am a residential appraiser and I am with the other appraisers on this post. I have lost 80% of my business. I have to consistently call these AMC’s for my money which I should have received 40% more for and collected it at the door.
The realtors on here on blaming appraisers for low values, guess what, appraisals are based on facts and closed transactions. Listing prices are not. When a realtor calls me complaining about an appraisal, I tell them to find me some comps. Not the comps that are 1,000 sq. ft. larger, or that are on sites 3 times as big as the subject or located 4 miles away when there are plenty of sales in the subdivision. Real comparable properties. 90% of the time they are not comparable.
Much more work for appraisers with the 1004MC and 50% less money and having to wait for it and make tons of phone calls to get it. How can we not collect our own fees and be able to discuss issues with the property to other “professionals” involved in the transaction?
I don’t agree with having an appraiser from a 2 hour drive away, but how are we supposed to make a living?
There are some companies that have a computer that tells me how to do an appraisal. What about my 8 years of experience? How is an appraiser supposed to even get in the business when no one will accept a report from a trainee. They all just want a one man show that will be at their beconing call when they want a $175 appraisal.
The government should be sued by all appraisers!!!!
I saw the perfect house for me so I gave an offer at the listing price. Paid the earnest and loan app. fee just to find out it appraised $9,900 less than offer and $4,000 less than the seller bought it for in 2001. This home has a new(less than 1 year old) roof and new siding. Either the seller refuses to believe it is a buyers market thus overpricing or we have an appraiser that is scared due to the new rules. Am I the only one that smells a rat ? I will ask the seller to go down to the appraised value but I doubt that will happen. It is no wonder why the housing market is rebounding so slowly.
The cost to reconstruct improvements is going to be higher than the current market at this time. We just had a housing crash or correction in which demand is lower than supply. This doesnt neccesarly mean that the cost of materials is going to crash right away with the market! The cost of material is still at previous market but it is starting to decrease along with labor.
I belive that the HVCC, even though the concept is good, creates a situation were it blames the appraisal process when the blame lays with senate finance and the lax of lending standards. Appraisers should not be coericed into value they do not feel comfortable with, but they should also be trusted in delivering the market value. Not to say that there are not crooked appraisers, there are many more honest appraisers than crooked. The crooked appraiser usally dont last long in this business.
I am a Realtor in Michigan and wonder why 3 out of 4 of my sales that have used an AMC in the last 60 days, appraise for 10% less than the agreed sales price? The 4th sale (the few that have no appraisal problems) are ALWAYS bank owned ranging in price from $60,000 to $300,000. Why do my forclosed sales always appraise and the privately owned ones never do?
It seems that the government ,once again swooped up the chance to take control over yet another issue when were in a vulnerable place.
It is important that everyone in this industry sign the hvcc petition!
[...] aside the weak production quality, this video is a great source of clarification about the misunderstands surrounding [...]
So many complaints.
Lenders order from the dollar menu and expect a half pound angus steakburger with all the trimmings. Keep hoping, it is not going to happen.
And going through exploitive middle-men doesn’t help.
There are three levels of appraisers: Licensed residential (green belt)
Certified residential (brown belt)
Certified General (black belt)
The lenders and their puppet AMCs expect black belt work from green belt appraisers.
So, what is happening now?……………. Enjoy!
To learn more about the HVCC scam (and how to stop it) visit http://www.investsmart.com
[...] http://speakingofrealestate.blogs.realtor.org/2009/07/31/hvcc-appraisal-rules-are-posing-a-challenge... [...]
[...] Almost every buyer seems to be frustrated about the home buying process…well they certainly should be! The inventory of homes, active listings has been delayed for months, due to foreclosure moratoriums. Usually, the home has a sale pending or ten offers waiting for an answer which never comes. Well, another problem which many home buyers are not aware of is called Home Valuation Code of Conduct (HVCC). [...]
To really have an “arms length” appraisal system we have to eliminate the “Purchase Contract ” requirement. If the real estate agent can’t “steer” an appraiser towards a neeeded appraisal value (of which I agree) what in the world do you think presenting the Purchase Contract does?? . It is actually telling the appraiser what the realtor can’t say verbally. Some refrorm! Joe Scovel Coldwell Banker, Utah
I want to add to my last comment. It is my firm belief that ALL SELLERS BE REQUIRED TO HAVE THEIR HOMES APPRAISED BEFORE LISTING THEM. I will not take a listing without requiring my seller to have a full blown aopppraisal done as a condition of my listing. It works PERFECT.
1) It educates MY SELLER as to what the market thinks about the value of his home before a buyer walks into the deat and insults him,
2) It tells the buyers’ agent that my client has a product “READY FOR THE MARKET” and not just a dry run to “test” the market
3) It actually eliminates offers lower than the appraised price because the mystery of the appraised price is gone.
4) The appraisal is assignable (maybe for a small fee) to the buyer.
5) It eliminates the “arms length” issue of my agency relationship with the seller and the appraiser. Thanks, Joe Scovel Coldwell Banker, Utah
[...] on May 1 of this year, look no further than this blog. Back in July, my colleague Rob Freedman published this post featuring a video interview with NAR policy analyst Jerome Nagy, which set off a firestorm of [...]
Frank,
I couldn’t agree with you more on your assessment of the whole picture. You are absolutely correct in your statement regarding REO and Short Sale properties having a driving effect on the housing market. I perform BPO report for various companies and rarely am I questioned regarding my “Price Opinion”. Now, most don’t want you to utilize these distressed properties as comps in your report unless the market is 50% driven. Having compiled data over the last couple of years and keeping this updated regarding distressed properties, I always provide the client with I hope valuable information regarding these distressed sales as having an impact on current owner/owned homes, along with the depreciation/appreciation within the immediate area of the subject. Which in all cases it’s depreciation. Painting a full picture to the client whether they utilize this information or not is entirely up to them. Am I qualified to perform these reports. Yes. Having appraised in the past and now an associate broker I feel I am more than qualified to perform these reports. Being ethical is always the key for everyone’s benefit. Keep in mind throughout all the bickering and finger pointing, “BUYER’S AND SELLER’S” will always set the price for home sales. They did it in 2004-2005 with multiple offers on a home because they just had to have that particular one. Appraiser’s were caught in the middle. Personally, I think it’s time to band together as a group instead of playing into the hands that are attempting to drive us further apart due to their greed.
Hey,
How about all you realtors thinking about this next time your deal gets torched;
1. Bank repo’s a home.
2. Fly by night agent hacks out a BPO (doesn’t really do it, has an assistant do it who has no working knowledge of real estate market, etc.
3. Bank prices home on flawed BPO
4. If it closes, it is market data.
5. Can’t close it because the bank/investor cannot reconcile appraisal and BPO.
Appraisers get the majority of their data from their respective mls systems. You ever try to call an agent to ask them about seller concessions? Or why the sale price in the mls differs from the deed? Or why they did not report any information on the sale when they post it in the mls? Or even why they did not bother taking a picture of the house they listed (makes ME wonder if they even know what they are selling).
I have appraised for 30 years, sold real estate and know there are hardworking professionals no matter the franchise. But what we have now is a generational gap in quality of agents, just like in the appraisal profession. We all need to work together to fix this housing situation. Pointing fingers is not doing anyone any good, especially the consumer.
As I have posted in other sites, if the Realtor Sales/Marketing folks were forced to go though an HVCC , NAR would of kicked in ASAP and stopped it.
If the Mortgage Brokers had to go through an HVCC type of process…well never mind, that wouldn’t happen. The main point here is that both groups had and still have the largest group size!
Marginalize This
Because of the limited numbers of Appraisers and their part of the process, they are the target. Realtor Appraisers are the red headed step children of the business any way and when change happens-rules change.
Every statement made by the Appraisers in this post is universally true, point on!
HVCC for the Commissioned Folks Now
My problem is appraisers get an order takes the 24 to 48 hours to make contact, we then get an appointment set. Then the appraiser goes out…we now wait 8 to 12 days for an appraisal that is incomplete or has issues..they are suppose to correct withing 48 hours (Which they do not)
Now the lender gets it and goes into desk review…they request on every single appraisal new comps, and address other issue…Here is the problem…They take up to a week more to get them in, if they are not on vacation…in either case the mortgage rules expect us to honor original closing date, fees and now any extensions must be pd by the broker….
So before 5 days for appraisals, now over 20 days on a good appraisal…this is costing locks lost, deals to fall thru, and loans have actually expired while waiting for updated appraisal.
I have had three over 25 days and one over a month…& HVCC will not refund the client.
HVCC is a little like a cow with two udders…a cash cow if you will. AMCs feed off of one udder while banks feed off the other. Borrowers and appraisers are forced to feed the cow and shovel it’s [beep] around the clock. Any leftover milk is sent to the cheese manufacturer [Andrew Cuomo] who in turn sells it for political gain. The cash cow had it’s day but it’s time to shove a stick of dynamite up it’s [beep]. AMCs and banks are bloated, appraisers are tired, and the cheeseman needs a new job shoveling [beep] for a change.
Any appraisers out there that would be willing to join an AMC boycott for 30 days or more? April 1st (1004MC day) or May 1st (HVCC hell day would be a fitting start dates.
Hey James August 15, 2009 at 5:06 am YOUR WRONG!! HVCC is going Bye Bye!
And Susie, I suppose your an RE Agent who waits till the last minuite to order an appraisal. hahah!
susie, Tell me HOW IS HVCC suppose to refund your money?
Over the past three-plus decades, I’ve learned that new policies and procedures generally take about six months to reveal any collateral damage (no pun intended). We must now acknowledge that the HVCC created is the proverbial six-legged, three-humped camel built by a bureaucracy after being given plans for a horse. The unintended consequences have been brutal.
What is even more unusual about the current HVCC nightmare is the total disregard for fundamentals and common sense during its creation. If real estate values are based upon location and an underlying presumption that the appraiser is aware of local influences, how does anyone argue bringing in appraisers from other communities, regardless of geographic miles, will enhance report quality?
The real estate industry has always acknowledged that properties are best analyzed by local appraisers who are familiar with the subtle, yet substantial, impact on values affected by the quality of school districts, aircraft noise or transportation arteries, to name a very limited few. No appraisal report can be complete without addressing any economic (aka locational) obsolescence, yet, in a perverse way, this most important aspect of value arbitrarily is minimized by distant regulation.
If there is any question as to the absoluteness of this axiom, why do buyers and sellers universally choose a “local” Realtor? I’ve tried, but can no longer avoid the obvious:
Location, Location, Location.
It is time to accept the obvious and remove this counter-productive regulation, as everyone reading this must have a specific story as to how HVCC alone has stopped a transaction. Nor would it take much imagination or calculation to quantify the economic loss to a neighborhood or community. Sadly, the concurrent tragedy is how these lost transactions fuel and promote the credit crunch by ignoring the free market’s attempt at correction.
HVCC has come under ever-increasing harsh criticism, and it is time to end this flawed attempt to regulate risk out of the market.
In 1974-75, part of the original RESPA legislation required sellers of a home to document, in escrow, the amount paid for the property, the documented improvements made, and the net profit to be made. This was intended to “promote stability” in the rapidly appreciating housing market. You can only imagine the response, and home closings hit a brick wall for about three months. Only after this requirement was removed did the market quickly return to normalcy. Given HVCC can also be repealed immediately, why it is still on the books?
[...] HVCC: Appraisal Rules Are Posing a Challenge : Speaking of Real Estate [...]
The HVCC bill is a terrible way to solve the problems that were created by the government and lenders. It is amazing that there are no regulations for these AMC companies and some are even owned by banks. They have increased the cost to consumers and cut the appraisers fees and pocket the rest, this does nothing to protect the consumer and with all the appraisers doing work that they know nothing about it does nothing to protect the investors. What needed to be done was to investigate and punish the appraisers and lenders that were doing things wrong. To suspend someones license for thirty days when they get caught commiting serious fraud is nothing,they should have their license pulled for good. The AMC companies stongly insist that you do not discuss the fees charged with anyone,this alone is a clear indication that something is being done that is not in the borrowers interest.
Appraisers are just cutting the values on these HVCC appraisals. Every appraiser is talking about it. It’s all over the local, regional & national forums. You cut my fee…..I’ll cut your value! Simple!
And when there’s a shortage of appraisers……………….they’ll cost you $2500 to get them the next day. Otherwise, it’ll be 3 weeks!