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Two EVIL words for Realtors & Lenders ALIKE to get to know..."Undue Influence"...IMPORTANT information on HVCC rules!

By
Mortgage and Lending with Funky Quail Vintage

Much like many of my posts, I am inspired by something that happened to me, is happening, or has happened to someone else, or in this case, a blog by another ACTIVE RAINER.   I spoke to a couple of senior members on this website before I posted this information, because I had considered linking to the blog that inspired me, as well as some of the comments that had been left.. Well, after much thought, I have decided to just post information instead...and let everyone reading draw their own conclusions!

This is a VERY evil two word phrase right now, so be patient and I will tell you why!

First of all, there are NO WAYS AROUND the HVCC rules, period! -  I thought I heard an echo.......yes, now I know I heard an echo!  You simply cannot and should not, get around these rules!

 

Obviously by now, we ALL KNOW about, and are complaining about this ruling!

That is NOT the point of this blog!

Click here for a direct link to the HVCC rules!

Recently, the issue had been brought up regarding a REALTOR meeting the APPRAISER at the home and providing Comparables to said appraiser!

There are many quality Realtors like Lenn Harley that believe it is part of their JOB and responsibility to be there, especially if they are the listing agent!  In this market, I AGREE!  However, BE CAREFUL what you say!

 

Well, I was concerned about this, and did QUITE a bit of investigation on this topic PRIOR to writing this blog....and HERE is what I found out!

 

*****************************************************************

 

 

Here is a qoute from an Account Executive first, then I will follow with my other comments:

"Darin,
I heard back from a few different sources and they all agreed that no, a realtor would not be allowed to meet with the appraiser or give comps to the appraiser.  Per the code could be looked at as undue influence on the appraisal."

Well, I didnt stop there.  I then phoned a company that does 3rd party appraisals through RES DIRECT, which is Wells Fargo's "go to" company.  I spoke to the "Head Honcho" there, and this is what he said...paraphrased....(btw- he preferred to remain anonymous, as well as their company)..I am currently honoring that wish!

His thoughts were that there is NOTHING wrong with a REALTOR (obviously in most cases the listing agent) meeting the appraiser at the home.  He even went on to say that if they provide COMPS in a nice, professional folder, and dont TALK to them about value... he considers that just fine!  He also thought it would be okay to walk around WITH the appraiser answering questions about the home, but again, HE STRESSED to NOT discuss home values or the current market conditions!

 

HERE is where it gets tricky and very precarious for a REALTOR!  My contact went on to say that he receives a DAILY "UNDUE INFLUENCE REPORT".  This report details Realtors that have been mentioned BY THE APPRAISERS THEMSELVES or the 3rd party COMPANY that employs the appraisers, for CALLING EXCESSIVELY, or for trying to "persuade them", or even ASKING questions regarding "pitfalls" and if they used or will be using a specific comparable etc..etc..etc..  In NO UNCERTAIN TERMS if he gets a Report on an ACTIVE LOAN with a REALTOR that has been mentioned on his "Undue Influence Report", WELLS FARGO will NOT BUY THE LOAN!   Keep in mind, now we are not just talking about being there when the appraisal is done, we are also talking about KILLING THE DEAL!

 

I then took it ANOTHER STEP further...and spoke to 2 different appraisers!  One of them I have never met in person, and only have had 1 transaction EVER with!  She stated that she has NO PROBLEM with a LISTING agent meeting her at the house, but does consider a REALTOR providing her comps to use as "undue influence".  Her logic is that the REALTOR is assuming she doesnt know how to do her job, and that by providing them, they are telling her where to look!

The 2nd appraiser felt ALMOST exactly the same.   What she went on to say though was that even if a REALTOR provides COMPS for her to review, that they OBVIOUSLY still look up their own!  However, there have been many cases where the COMPS provided actually MATCHED case for case on the ones that she used!  She complimented Realtors for the job they do, but did say that they have a hard time understanding the rules THEY must follow concerning distance, recency of sale, size, and adjustment values!

 

 ********************************

IN THE END, it truly does not matter HOW you feel about this subject, the rules are the rules!  Obviously, these rules were created by the mis-use of the LENDER/APPRAISER relationship, and undoubtedly, were made worse by the pressure being put on  the Lender by the REALTORS and buyers/sellers alike!

Here are DIRECT QOUTES from the HVCC rules:

Section 1

Sub-section B

#5

requesting that an appraiser provide an estimated, predetermined, or desired valuation in an appraisal report prior to the completion of the appraisal report, or requesting that an appraiser provide estimated values or comparable sales at any time prior to the appraiser's completion of an appraisal report;

Or, Section IV

Sub-Section B

#4

the lender, or its agents, and any appraisal company or appraisal management company providing the appraisal to the lender do not provide the appraiser any estimated or target value of the property or the loan amount applied for (except that a copy of the sales contract for purchase transactions may be provided);

 

 UNDUE INFLUENCE -  While they specifically mention LENDERS many time, they also list the word AGENTS too!  This is being INTERPETED as Realestate Agents!  My guess, is that the NEXT change involving HVCC will include the SPECIFIC words, REALTOR, REALESTATE BROKER,SELLING AGENT,LISTING AGENT and the like!....sooooooooooooo

Get to know it, and stay the heck away from it! 

 

It's only 6 pages long!  If you want a copy, email me at Darin@osmwi.com

Ill send you one!

 Thanks for reading & Keep selling!

-Darin-

As always, I welcome your concerns,comments,issues and suggestions!

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Comments (79)

Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

Darin.... in regards to your comment, I don't think this is true socialism, but just gov't intervening, trying to make a change for the better, yet it can and will backfire.

Questions to you....

  • by implementing the HVCC, how is that communism or socialism? 
  • What does the gov't gain by doing and enforcing the HVCC?

 

By not allowing the borrower to choose between a conventional loan and or other loans, sure, their choices become scarce.  If they make too much money, the only program left usually is FHA.  But FHA loans are bought by private investors.

Sure, FHA loans are insured by a gov't agency and is a federal assisted mortgage program. But the overall picture is that it's controlled by those investors that sell & buy Ginnie Mae pools.

 

In any case, just food for thought, because I was trying to follow where your comment was going. Overall, I just think it's the gov't just making a poor decision, and not having anything really to do with money or profit. Communism and or socialism to me is when the gov't controls something for greed, profit, and or power... that is my opinion. 

 

But getting back to your topic... it's just the gov't trying to make a situation better, in their minds, yet it will backfire in some ways. This was something that should have been looked at 10 years ago, when lenders and appraisers were abusing the system. But the gov't had to wait until the market crashed...  sad..

jeff belonger

Jun 20, 2009 12:26 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Darin, you write such great content and very informative.  thanks so much and keep it up !!

Jun 20, 2009 01:07 AM
Jesse Skolkin
Independent New York State Certified Real Estate Appraiser - Fresh Meadows, NY

My view of agents providing the appraiser with comparable sales is that it can't hurt.  The opinion of value on a particular property will be mine and mine alone, so anything an agent provides will be considered within that context. 

I have had many cases where I met an agent at a property who had the provided the same potential comparable sales as I had selected, with perhaps one or two I may have considered but rejected for various reasons, or even one I may have missed (I am a fallible human being, after all). 

I have also had a few cases where I met an agent at a property who provided only the highest sales in the area which were obviously NOT comparable to the subject.

As long as the agent simply provides data for me to consider, and does not engage in any conduct which could be construed as coercive, in my opinion no violation has occurred.

My point is that simply providing data to an appraiser is not (in my opinion) undue influence, but can become undue influence when coupled with inappropriate comments such as those stated by my colleague Mike Lay above.

Jun 20, 2009 06:29 AM
Janet Guilbault
Platinum Home Mortgage Company - Walnut Creek, CA
San Francisco Bay Area Direct Mortgage Lender

Darin: Why is a Realtor meeting with an appraiser armed with comps any different from a loan officer ordering an appraisal and discussing comps?

It seems to me if the problem is conflict of interest, then a Realtor has just as much "interest" in getting the right appraisal as a loan officer. Why isn't this considered to be a CONFLICT?

Frankly, although I am not in favor of HVCC (because it harms consumers) I have to say this: It almost seems like the appraisal monkey jumped off the back or mortgage people and landed squarely on the back of Realtors.

Now they are the ones that may be accused of UNDUE INFLUENCE. And yet who could be more knowlegable about pricing than the listing agent????

I WANT the listing agent to be involved. They SHOULD be able to make a case for the price that the house sold for. That is adding supporting facts from an expert, not undue influence.

Jun 20, 2009 07:46 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

@Janet.. I will semi disagree with your last statement.  In more than a few cases does the listing agent list the house correctly. Remember, they are sales people also. In some cases, they want the deal so bad, that they will list it for what the seller wants the price to be, to sell at.  And in some of these cases, it's not even close. I have one right now, that is listed for over $40,000 of the real value. The appraiser spoke to the realtor about this and she even knew this.  It's what the seller wanted to sell it at.  So not all can make a case, but sometimes a case that they want it to sell at, because they want to make the seller happy.  Just my .02.

jeff belonger

Jun 20, 2009 10:12 AM
John Jones
Briggs Freeman Sotheby's International Realty - Dallas, TX

I recently had to write a rebuttal to a review appraiser who cut a significant amount of value on a property.  This was an FHA loan, so no HVCC rules.  Also, the transaction was a FSBO and i was unable to talk to the initial appraiser to provide a rebuttal, which is obviously the normal procedure in cases like this.

Long story short, the appraiser made a major error on calculating lot size (both appraisers did, actually).  The review appraiser applied a significant adjustment for small lot size to the subject, but as it turns out, both appraisers were using tax appraisal lot dimensions.  The lot was irregular and SIGNIFICANTLY larger than shown on both appraisers.  In fact, it was more than twice as large as all lots of every comp listed in both appraisals.  Plus there were some other errors, but none this significant.  The seller and I both worked for hours reviewing comps.  In the end, the value was raised several thousand dollars (below original sales price) and the transaction closed. 

My point of this story is three things: 1) people make mistakes 2) the situation was resolved by pointing out the incorrect FACTUAL DATA and 3) I submitted my rebuttal in writing, i didn't meet the reviewer or talk to him in person.  The lender actually told me that i would not be able to send a rebuttal, but i finally persuaded an underwriter to forward my email with a promise that i would NOT CALL HIM.  And since i just pointed out facts, he quickly changed his opinion of value and we moved on.  So I have absolutely no worries that anything i said could be interpreted as coercive.  And if they ever tried to come back on me, i can back everything up because they are all facts that can be documented.  There was no subjective conversation or dialogue, it was one-way communication.  I was extremely careful not to talk down to the appraiser (after all, everyone makes mistakes).

I agree with Lenn Harley and others that showing comps to the appraiser is both good client representation AND can be extremely helpful to the appraiser.  BUT you have to be careful about how a conversation could be INTERPRETED by the appraiser.  Most successful realtors i know are very headstrong, and they can come across as intimidating EVEN THOUGH they aren't trying to be.  Good salespeople are often like that naturally and can't help it. 

After reading this blog and knowing that lenders are keeping a list (a.k.a. BLACKBALLING) realtors for talking to appraisers should be a warning to everyone to watch what you say. In lieu of having a conversation with the appraiser about the comp values, providing a list of comps ALONG WITH a WRITTEN EXPLANATION of facts that helped you determine value might be a better and safer alternative than talking to them.  I'm not saying don't meet them in person, but having a conversation might be something you want to think twice about.  Simply handing them an envelope with your comps and letter might be a better call. After all, if there's a dispute about what was said, whose side do you think a lender will take?  The bottom line is that many lenders DON'T CARE.     

Lenders have blackballed all kinds of people in the past, often for good reason s, but also for reasons that never made any sense.  So it's no surprise to me that realtors may be the next group to have to deal with this.

Unfortunately I think that mistakes and poor research in general may become a lot more common on appraisals ordered via the HVCC process.  Why?  Because of how it's affecting many of the appraisers in general.  I lost count of the conversations i've had with appraisers about how management companies sit on orders for three weeks and then call and expect them to drive 80 miles and turn over an appraisal in 24 hours (all the while keeping HALF of the appraisal fee).  Those conditions aren't conducive to performing good quality work.  Believe me, they are all really happy about taking 50% pay cuts and losing a large part of the control over their business. Can anyone here see how that might affect an appraiser's ability to perform good quality work? With that in mind, it may be even more important for realtors to provide this information.  And unfortunately it appears that may become very risky. 

It's too bad things have come to this.  There does need to be a level of seperation between appraisers and production staff, but there are a million ways this process could have been done differently that would have made more sense.  VA has an appraisal ordering process that seems to have worked well for years and i have no idea why something similar to that process could not have been done in place of this cluster of a system.

 

Jun 20, 2009 11:48 AM
Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

Whew!  Now this is a must read post for all of us - it's our Stay Out of Jail card! 

Jun 20, 2009 11:54 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Hi Jeff,

I think I can answer some of where you are going by giving you a definition of SOCIALISM from dictionary .com...I KNOW you could look it up..but just CHECK out the wording...

"(in Marxist theory) the stage following capitalism in the transition of a society to communism, characterized by the imperfect implementation of collectivist principles."

Doesn't this SOUND like what is happening right now?? SERIOUSLY !!!  It is!  Now, there is no time frame as to HOW long each stage lasts...LOL...but we are DEFINITELY headed toward Socialism!

Here is the 1st definition of Socialism....

"a theory or system of social organization that advocates the vesting of the ownership and control of the means of production and distribution, of capital, land, etc., in the community as a whole.

Jeff-  I didnt intend to discuss politics...however, Government controlling banks, setting price controls, forcing people to take out a specific type of loan, coming out with HARP programs that benefit ONLY a small portion of the populace, and now not trusting lenders & actually FAVORING 3rd party systems that you and I BOTH KNOW have flaws as well,....all smacks of the growing socialistic trend in the US!    Everytime I try to convince myself otherwise, i go back to the definitions!  Its tough not to feel that way! 

HVCC is ludicrous!  UNDUE INFLUENCE is not an opinion,my opinion, nor did I make it up!  It came STRAIGHT from the people's mouths that are involved with it every day!  Just because one bank, one lender, one credit union, or ONE PART of the country hasnt heard of this or had to deal with it yet, only makes THIS BLOG that much MORE IMPORTANT! 

"What does the gov't gain by doing and enforcing the HVCC?"  GREAT QUESTION!  I would say the Government gains nothing really, but the ADMINISTRATION does...Politics....at its purest form!  THEY THINK they are helping, but who in the end are the hurting the most?? JUST LOOK AT MIKE IN TUSCON"S comment!   THEY ARE HURTING THE VERY PERSON that matters most...The consumer!

Thanks  J-   D

Jun 20, 2009 12:24 PM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Kristin-  Im so glad you appreciate what I am doing!  Thank you!  I appreciate your comments and the fact that you take time out of your busy day...to read!  thank you!-  Darin

Erica-  All of this will make you a much better appraiser, or Realtor, OR BOTH!  The old saying, "it is better to beg for forgiveness, than ask for permission"...has to go out the window now I think!

Here's a better one:   Dont let the door hit ya, where the good LORD split ya!  :)

Thanks! -  Darin

Jun 20, 2009 12:26 PM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Jesse-  I stand by what I was told, and put in the blog!  Put all the information you want to provide, in a professional company folder.   Answer questions about the house as the appraiser asks you..and leave it at that!  THEN, it sound like all good!  -  Thank you for sharing your insights!  -  Darin

Janet-  YOU ARE RIGHT!  There is no difference!  Much of what has been said is that LENDERS got "into bed" with appraisers, and pushed values!  Hello!!!  I think it is hard to push a PURCHASE value..dont you??  LOL...This was all done on REFINANCES!  I had considered writing a blog about this...but I dont think ANY of this mess is due to SUBPRIME mortgages!  You are probably going to think I am on "crack" right now...but I THINK, it was due to the availibility and EASE of getting HOMEEQUITY loans!  Just ask any SHORT SALE driven Realtor!  Almost all of the 2nd mortgages are getting eaten alive!  Leaving only enough to pay the firsts!  While I was working for a LARGE NATIONAL LENDER...we actually got a bonus on any Home equity loan sold to the customer, EVEN IF THEY DIDNT DRAW any money on it!!!!!  Better yet, they had a streamline process, so if you didnt need an appraisal for the 1st mortgage refinance, you could do a 2nd at the APPLICATION VALUE  up to 90% of what was on the findings report!  ....in that case...WE DIDNT EVEN REALLY KNOW what the value was!!  Who cares right?? is it the LO's fault>>?? Or, do you blame the company?? THE LO was just doing their job with the programs they had available!  NO differnt than today!  Just look at Jeff Belongers comments....pretty much, he only does FHA loans!  He does all the others too..but he has chose to drive his business towards that product for a long time...He didnt KNEE JERK REACT, and all of a sudden start doing FHA loans!

Anyway, I have read the HVCC now, about 10 times...and it keeps getting back to the word COMMISSIONED , or anyone DERIVING a commission from the sale!  (yes, I am paraphrasing)...That said, a listing agent has a commissioned interest to sell the home for the highest price, and best deal for their client!  THE SELLER!  That, is Capitalism folks!  If they are taking that away, that is why I made the comment to JEFF about Socialism!  ...again, hate the politics...but we have to get involved, we have to learn about this stuff...and we have to put safeguards in place to avoid these things from STINGING us!  Hopefully, my blog will save just one person from downfall!

In the end, if a REALTOR(listing agent), causes undue influence, and the loan is rejected by the funder..THEY CAN go somewhere else...The issue as I SEE it ...what happens if rates go up?? What happens if there is a backup offer?? What happens if the SELLER was counting on the money to close on the purchase of another home?? Who is liable?? Well, if they are documenting this stuff, guess what...a WHOLE NEW SERIES of lawsuits are going to start flying around like picnic bugs in July!!!

Thanks!-  Darin

Jun 20, 2009 12:39 PM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Jeff B-  You know, I think we all have exceptions to the rules in our back pocket..and that is all part of being EXPERIENCED!  That is why consumers gravitate to people like us!  It is JUST those experiences that make me personally ALOT MORE VALUABLE than the next guy or gal!   How we learn from these things...is the biggest part!  Experienced people TODAY, have to be willing to accept change, and be able to move past ego...and on to ergo!!!  :)  LOL   In your example above, I am confident the REALTOR has a copy of her CMA to fall back on...so she would be safe!>>>>that is the I TOLD YOU SO...document!  Thanks again!  =  Darin

Jun 20, 2009 12:49 PM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

John Jones-  You know, all well said...Great examples cited too...Not sure I even NEED to comment!  Really!  Well done!  Please come back and comment often..and never worry about LENGTH on my blogs...I have been VERBOSE on many occasion...Oh, and dont forget the classic other one..garrelous..>Not sure I can even spell that right!!! LOL...>Thanks so much for sharing!  Great points! -  Darin

Jun 20, 2009 12:51 PM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

PATRICIA-  WELL SAID!    You know, I hadnt thought of it that way..but yep, you are right!  I was asked what the penalties are etc...good questions...Penalty is only to the consumer!   OUR ACTIONS WILL AFFECT the consumers life!  THAT IS WHY we have to be careful!  if they turn the customers LOAN DOWN due to undue influence by ANYONE...we only lose a loan, you only lose a commission, but the buyer loses their dream home and the seller may not be able to BUY theirs!  OUCH!@!

Thanks for sharing..and I appreciate the kind words!=  Darin

Jun 20, 2009 12:54 PM
John Jones
Briggs Freeman Sotheby's International Realty - Dallas, TX

I will Darin, thanks.  (short and sweet this time LOL)

Jun 20, 2009 03:06 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Darin..  here is my opinion... you are throwing in everything else that the gov't has done in recent months. I stepped away from that, not to allow it to influence my thought process, and to just pick apart the HVCC issue(s). You brought up everything else that has taken place, which I think is not fair nor related to this one issue.

As you even stated yourself, you said.. "What does the gov't gain by doing and enforcing the HVCC?"  GREAT QUESTION!  I would say the Government gains nothing really, but the ADMINISTRATION does...Politics....at its purest form!"

That was my whole point to your statements...   how can you put this HVCC into the same category of communism and socialism. First off, you stated, "Jeff-  I didnt intend to discuss politics...however...."

In my opinion, when you stated the words Socialism and communism, you yourself opened the door to politics. Yes, I don't like talking about politics either.... but you hit a key point. You said that you think the gov't thinks that they are helping... I agree with that statement and I agreed with your next statement.  "but who are they really hurting, the consumer."

Again, I agree with that... but how can you relate this issue to communism and or socialism.  Especially when you say to me...  good question. And then say, the gov't gains nothing...  ???  Doesn't that sound like a double standard

 

Darin, overall, I agree that this is a mess, that it hurts the borrower and our industry. But I just chalk it up to stupid politics, politicians, who aren't using common sense... who are trying to make it look like they are doing something right, when this should have been seriously looked at and evaluated 10 years ago, when lenders & loan officers were abusing this back then... over-stating value and forcing appraisers to come in higher.  But that those same appraisers should have been held responsible for the same reasons.  I think this whole situation is a catch-22... not about the gov't trying to be communistic or socialistic.  And I only brought those words up, because those were your own words, describing what is taking place. When in my own opinion, you were throwing this issue into the mix of the other issues that have taken place within our gov't. And I don't think this issue is related to the other issues that suggest socialism. I will agree that we are headed towards that issue of socialism, but not with this example of the HVCC.  That was the point that I was trying to make. Thinking that this is a totally different issue, not related to anything but stupid gov't control, gov't regulation, that they are trying to make a wrong into a right.

jeff belonger

Jun 20, 2009 10:56 PM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

John-  Been out of the loop for a few days!  Sorry...Back here now!  Thanks for visiting man..come back often!


Jeff-  I partially disagree with you.   First of all, the main focus of your business is FHA loans..and some USDA loans.  Hence, you have not had to deal with the same level or number of related issues as compared to others.  For that, I DO understand your position.  However, taking one small part of what I said , out of ONE SMALL comment...and NOT the blog...really is splitting hairs,and is more you making it an issue than I did!

You turned the conversation Jeff unneccesarily when not ONE other person did...to politics!  it is VERY easy to compare the two...but that was never the POINT of the blog, but yes, was mentioned for a fraction of a second in ONE of my many responses.  I dont ever mind opening up any door, pandora or naught...

The question about the Government YOU raised..I did not..I only supplied my answer to your question.   My answer, or response would be this....At what point isn't government control a step toward Socialism? At what point does it convert?  Within which industry does it have to start or end?? Unfortunately, our industry is at the forefront of almost every other news story.  Hence, GOVERNMENT control of loan programs, banks, appraisal requirements, affordability...etc...where does that end??

You know, in my career, I have seen 1000's of loans that should be have turned down due to the debt ratio NOT inclusing child care expenses, BUT, accepting child support as income...why dont we include car, health, dental insurance, elect, gas, cell phones, etc..etc..etc...etc...I wouldnt be surprised if the GOVERNMENT starts enforcing that...!  Actually, they really have because of the lowered MAX debt ratio requirements...They are not CALLING It that...but that is what they are now considering into the lower ratios...Next thing I PREDICT you will start hearing MORE about... is an old item...called Margin Per Household Member!  None of these items would be good for doing loans..but of course woudl increase the quality of the portfolio.

In addition, years ago..there was a philosphy engaged at the FINANCE company level..It was merely to OUTGROW your delinquency...control your first payment default rates, and do a good job of listening to customer issues/concerns when there is a problem...Especially at the beginning of a loan term! 

HVCC is only a step in a bigger Ladder Jeff!  It certainly isn't the start..but if people dont pay attention, it will be too late before they figure it out!!!!!  Education through AR, and other sites from quality reputable people, and blogs such as this...are one way to aid in the understanding of "LACK of UNDERSTANDING" that poses one of the biggest threats to our industry!

I spend 2-3 hours per day..educating!  Not selling, not marketing, not processing...but educating!  I constantly have to UNDO what people have already done!    As YODA SAID..."you must unlearn, what you have learned".  (in a yoda voice)

IN my humble opinion 50% of the appraisers, should have lost their lisence...right away! 

Thinking that an appraiser, or Realtor, is anymore honest, upfront, or forthcoming than a lender, and worse yet....DOESNT HAVE AN OWNERSHIP interest in the transaction , is proposterous!!

Point of this blog was to state fact, not fiction.  People can think what they want...that is the point of forums like this...They can say things like, "they dont do things like that here out in Nevada, California, or in this part of the country"....but that to me, merely tells me THEIR lender partner is not on top of things or the changes!  Typically, large companies such as Wells Fargo, get in FRONT of these issues before other people are forced to deal with them! Then, they are already griseled veterans in dealing with them!

HVCC rules stink..and it should be abolished!  Your idea of a ROUNDTABLE discusssion, will hopefully come to fruition.  Washington quite simply is acted to quickly on advice from people who dont have a clue!!

Darin

Jun 24, 2009 06:59 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Darin, My biggest worry regarding this issue is appraisers coming from outside of the area to do appraisals. It's similar to a bank in Ohio telling me that several lots they own here are worth $100K+ each, when they will be lucky to get $40K for each of them. They are all the way across the country and have NO knowledge regarding the market here!

C-O-N-G-R-A-T-U-L-A-T-I-O-N-S-! on your featured post...most deserved!

Jun 24, 2009 08:16 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Hey there Wanda-  Thank you for commenting!  I see YOUR worry as a very similar worry not just amongst Realtors, but also Lenders and EVEN CONSUMERS are getting into the act now!

I think part of being a professional IS KNOWING YOUR OWN MARKET!  Kinda similar to out of state lenders actually lending in your community....ie:  Ditech, etc..etc..JUST ASK ANY TITLE COMPANY what they think about that!  Thanks for the kind words, and if I lived in UT...I would love to work with a quality Realtor such as yourself!!! 

I considered THIS POST an extremely important one!  I have another one coming out with some industry updates tomorrow!

Thanks again!

-  D

Jun 24, 2009 08:52 AM
Shannon Lefevre
John R. Wood Properties - Naples, FL
Shannon Lefevre, PA Your Naples Smart Girl

I had no idea we weren't supposed to talk to appraisers about comps. Alot of the stuff I list, I'm required to accompany anyway so there's no way around that but thank GOD I didn't try to push comps in front of the appraiser I met last week.  Thanks for the clarification. :)

Jun 24, 2009 01:45 PM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

Shannon, happy to do it!!!  I took this BLOG very very seriously, and hope that the readers do too!  it is truly no joke!   You are fine!  You did ALL the right things!  Leave it at that..and you are good to go!  Feel free to follow the links to the actuall HVCC code...It's only 4 pages..so wont take you TOO long to peruse!  Thanks again!  Take care, Darin

Jun 24, 2009 04:21 PM