By Robert Freedman, senior editor, REALTOR® Magazine
Are you still seeing valuations that don’t reflect your view of market value? Are appraisers still hesitant to take information from you or even answer your calls? Are the appraisers who set value still coming in from outside your geographic area? Are most appraisers getting their jobs from appraisal management companies (AMCs), whose fees, many appraisers say, cut too deeply into the appraiser’s bread and butter?
These are some of the questions we hope to get answered in a webinar we’re hosting next week with Mark Johnson, head of the country’s largest AMC, LSI, Inc., and other presenters.
It was roughly one year ago that the Home Valuation Code of Conduct (HVCC) took effect. The product of an agreement on appraiser selection between the state of New York and the two secondary mortgage market companies, Fannie Mae and Freddie Mac, the agreement had the force of national policy because Fannie and Freddie, with the OK of their regulator, applied it to all of the mortgages they handle.
About six months after they entered into the agreement, FHA came out with its own appraiser-selection policy changes that were based on it, although the changes were widely seen as reflecting the best of HVCC without its worst.
Well, HVCC is set to expire at the end of the year, but for the agreement’s critics, that is unlikely to change much, because the procedures put into place by Fannie, Freddie, FHA, and mortgage lenders are for all intents and purposes here to stay. But will there will be some actions to address the concerns that have been raised and that continue to be raised today? That’s what we hope to find out.
If appraiser selection remains a concern of yours, consider attending the webinar. The goal is to give you a better idea of where the issues stand and what might be coming up in the months ahead. In addition to Johnson of LSI, we’ll hear from Dave Biggers of the Mercury Network, a software company that provides an arm’s-length appraiser-selection portal for lenders, and Greg Lane, an appraiser from Tallahassee, Fla. We’ll also hear from, NAR regulatory staff on the federal regulatory and legislative situation. REALTOR® Magazine Editor in Chief Stacey Moncrieff will be hosting.