I was going to make this a one line post and say that this law STINKS and leave it at that.  But in fairness to the consumers, realtors, lenders and everyone else out in the lending sphere, the law review needs some elaboration.

HVCC was created to take the originating task force out of the way of influencing appraisal values.  The real truth is that it rarely happened.  I'd say that less than 3% of the lenders were unscrupulous, but as the expression goes the whole suffers because of the sins of the few.  Needless to say, those that are suffering are not only lenders, but realtors and, most importantly, CONSUMERS. 

We now order our appraisals through a corporate round robin or worse, through a national appraisal ordering firm.  The power has shifted that instead of having a lender protect the consumer and push the process along to meet the goals and deadlines set in the legal contracts, the prcess is left as if every party is putting their heads in a blender.

We now can't say that we want to use an integrous appraiser.  In the inverse, appraisers that have been blackballed because of unscrupulous or shady practices are now in the mix providing their services to lenders who have blacklisted them. 

I'm seeing appraisal contingency deadlines being blown because appraisers are now taking 2 - 3 weeks for an appraisal.  Appraisers aren't even acknowledging that they got the appraisal order.  In the meantime, great appraisers are waiting for appraisal orders because their name hasn't come up in the round robin format. 

WHAT ABOUT REFINANCES????

As a consumer, wouldn't you like to get an estimate on the value of your home or a ballpark before you write a lender a check?  We used to say, Mr. Smith thinks his home is worth $300,000.  He wants to refinance.  Is that likely or is he on crack?  Now, pay the lender so that we can pay the appraiser and they don't care anymore.  It's like a government job.  Once you're in, you're in!  So sad.

There's really nothing good about the law, except to give poor appraisers an opportunity to correct the sins of their past or slide under the radar and get on some lender's round robin format. Am I Clicking with you Here? 

HOPE STILL EXISTS!  HERE'S WHAT YOU CAN DO:

1)  If you're writing a contract as a realtor, build in an extra week or two for the mortgage approval.  We're getting them done, but the the HVCC is wrecking havoc within the insudstry;

2)  See if your lender orders appraisals from a national firm or do the do a round robin from their corporate office.  I'll tell you hands down, the more control that a lender has on an appraisal delivery, the greater the likelihood that you'll hit your date easily.

3)  Be in constant communication with your lender.  While your lender can't interface with the appraiser, their corporate offices can. 

4)  THIS IS MY FAVORITE....CONSIDER FHA!!!!  FOR NOW....FHA does not have these restrictions.  I'm told by very high up sources that it's inevitable that this same law will eventually apply to all loans.  As of now...it doesn't.  I'm now excited when I can do an FHA loan for someone because I invariably am assuring the client of a greater service because I have greater control for the consumer.

In conclusion.....IT'S HERE!  Be aware, be advised and proceed with caution.