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HVCC: What a scam!!!

All in the name of protecting the borrower...

Apparently HVCC is a means for Appraisal Management Companies (A.M.C.'s) to gouge my valued clients.

We are doing mostly FHA purchase and streamline refis at this time, so I hadn't yet had the occasion to experience the HVCC appraisal ordering process. Boy was I in for a shock! Taylorbean has contracted with an AMC called Security One. I submitted my loan, locked the rate and went to order the appraisal via there on line system. When it came to the cost, my jaw hit the ground. My mortgage practice is located in an area where appraisals typically cost $325-$350 for single family homes. When I finished the order form, and $450 was the indicated price, I thought I had done something wrong. I started over 4 times, getting the same result before I contacted my A.E. I was doing it right. I then called Security One, to let them know I would not allow them to GOUGE my client, and that I would no longer do business with Taylorbean or any other lender they were associated with.

Are any other Mortgage Brokers finding similarly high prices with this new system? I hope this is isolated, but then again I don't as I'd like some more amunitiion to get rid of this assinine rule.

Thanks for your thoughts!

Sean Wheelan
Personal Mortgage Consultant
The Mortgage Group, Ltd
401-965-9384 Cell
SWheelan@TMGLtd.biz Email
www.TheFriendlyNeighborhoodMortgageGuy.com Web Site

Posted by Sean Wheelan on 05/14/2009 02:29 PM

Comments (10)

HVCC - Is It Legal in the Mortgage / Finance Channel

hvcc, cuomo, new appraisal guideline, security one, conventional appraisal

Post is included in group: Mortgage Brokers Unite

10 Comments on HVCC: What a scam!!!

MAY

I think people jack up fees because they can. Supply and demand...

If this money went to the appraisers, I'd understand, but it isn't. It's going to management companies and, from what I hear, the appraisers are getting less than before.

Sean, If they added value to the appraisal process I could understand the increase in fees, but they don't. Rich

Time for a big change. I signed the letter that was being circulated to let the HVCC people know we will not stand for this unnecessary change.

Wow!! Another fine example when government mandate (sponsored monopoly) takes over from free market system. Incredible.

Thanks for the comments!

Chuck- this is a crude form of "supply and demand", take a way the supply and keep the demand. Sounds more like a monopoly.
Lenn- You are always "in the know". Reputable appraisers are being forced to work quicker and for less. This will have an affect on quality. Higher prices and a lower quality end product.
Rich- If any thing they are taking a way value.
Angelia- I hope more people follow your lead!
Jim- You hit the nail on the head!

Sean Wheelan
Personal Mortgage Consultant
The Mortgage Group, Ltd
401-965-9384 Cell
SWheelan@TMGLtd.biz Email
www.TheFriendlyNeighborhoodMortgageGuy.com Web Site

MAY

Hello Sean, I agree with you, I save my clients money and if this is going to "gouge them" I will go else where for my appraisals if the lender allows me to or I will find another lender.

BTW, It was a pleasure meeting you last night at the meeting at Courtyard Marriot, Janet Deleo introduced you to me. You are my first AR in person meetup.

Kathleen,

Thanks for the comment and nice meeting you as well!
For USDA, VA, FHA and Reverse mortgages we can still choose our trusted appraisers and provide a greater service level to our clients. However, with the Fanne and Freddy loans, we must use only the appraisers associated with the particular AMC that a given lender has contracted with. Hopefully, we will see some more favorable rates with other banks and investors...

If I can be of service in the future, don't hesitate to call or email.

Have a great Memorial Day Weekend!

NOV

If you're looking for the real story on HVCC, visit www.investsmart.com

David,

Interesting stuff. It's amazing what happens when the government "helps" us!

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