Well, within the last 72 hours, I have had 2 SUCCESSFUL appraisals fall within the HVCC guidelines!
They have both been delivered at/or above the purchase price, and we are "ROLLING ROLLING ROLLING!"
I thought with ALL THE NEGATIVE publicity it has been getting, I would give the HVCC some solid PUB!
Even though my friend Rowdy here is still a little doubtful, I am confident we can overcome this HVCC issue.
In the two examples I am about to give, one was ordered thru the WELLS FARGO system, and the other through the Bank of America system! To clarify too, the system MIGHT work a little differently for a Mortgage Banker, Bank, Vs. how it works for us brokers! However, this will give you all some insight as to HOW the system works, or as many will tell you, doesnt work! :)
Story 1-
Wells Fargo uses a 3rd party company called RES DIRECT. They can be found at www.res-direct.com
This appraisal was ordered, done, and uploaded in less than 7 days!
Our company, a broker, has to set up an account with them, then go online, and order the appraisal. Here is where it gets sticky tho....the CUSTOMER HAS TO PAY ONLINE OR BY CREDIT CARD! We are also given a "price" at this point right online so we know what to PREP the customer for! However, we NEED THEIR CREDIT CARD INFO in order to order this! Yikes!...yet another opportunity to get into trouble huh?
The 3rd party company, RES DIRECT, then "farms out" the order to one of 2 appraisal companies. LSI, or Rels Valuation.
We have to then FAX A COPY or email a copy, of the PURCHASE AGREEMENT to a completely DIFFERENT PHONE# or email address!
We then give them a due date, or time frame in which we need the appraisal, and they go to work at finding an appraiser to get it done!
All through the process, we get email updates or status reports sent RIGHT TO OUR EMAIL INBOX! These are actually pretty SWEET, because we know when the order was received, contact was made, a day & time has been set, and when we can expect to have the appraisal uploaded into the system. In addition, they put notes on the system to let us know if there is a problem, or any other kind of special "needs" or "requests" that they may have! For example, listing or zoning information, special flood areas, etc..etc..Truthfully, in 20 years, I haven't received this much followup contact with ANY appraiser!
Wells Fargo then receives the appraisal directly, and at THAT POINT, if we have an issue with the value, we NOW CAN TALK TO THE APPRAISER as we know who it is, and we can follow the procedures put forth by the company on debating value or debating "issues" that came up with the appraisal! Thought behind it is that value has already been established, and UNDUE INFLUENCE cannot affect the outcome!
Story 2
Still waiting for appraisal to come back, but was ordered 7 days ago, and appraisal was DONE 2 days ago, but the LISTING AGENT wont get back to the appraiser with questions regarding title & ownership! Hence, we should have had it by now!
Similar to Wells Fargo, Bank of America allows us to order the appraisal online! In fact, there is a dropdown tab RIGHT within our companies PIPELINE on their website! We click on it, type in a whole bunch of information, and again.....CALL THE CUSTOMER AND GET THEIR CREDIT CARD information, and bang....the appraisal is ordered!
ONE HUGE difference here though is that we as a LENDER, STILL HAVE TO GO IN once the appraisal is done, and UPLOAD the appraisal to the underwriter assigned to the file! Kinda dumb don't ya think that a company as LARGE as Bank of America cannot retrieve their own appraisals?? I think so...
The ordering system was a little easier than that of Wells Fargo, and again, we received followup emails every step of the way!
In BOTH CASES I am fairly impressed & not bad turn time!
In Summary
Much like LENDER OVERLAYS on loan programs, there are also what I refer to as HVCC overlays as well! In other words, NOONE truly understands the "rules" regarding HVCC compliance so many just say talking is a "no no" and leave it at that. It is the midsize Banks & Mortgage Bankers etc...that MAY incorporate some of the "new" changes, but companies like Wells and others tend to set the standard! It all truly depends on if the FUNDER/LENDER wants to take or share the risk!
The HVCC is not something to be afraid of, but you DON"T have to be happy about it, or embrace it either!
Reminder#1.- FHA,VA, & USDA LOANS are NOT SUBJECT to HVCC rules, period!
Reminder#2. - You can talk to the appraiser (both lender & realtor) AFTER the appraisal is done and value has been established and accepted.
Reminder #3.- There is a "challenge" system in place at nearly ALL 3rd party HVCC companies! Learn it, ask questions about it, and follow the rules to a T!!!
Reminder #4.- Always have the words "UNDUE INFLUENCE" in the back of your mind! If you "THINK" what you are saying is wrong, it probably is!
Thanks for reading & Keep selling! -Darin-
As always, I welcome your concerns,comments,issues and suggestions! Darin@Osmwi.com You can suscribe to my blog by clicking HERE, or by clicking on the ICON below!
Feel free to check out a few of my more popular blogs by clicking on the links below! Return of Bloggie Latest USDA MEMO For Sale Signs Home Improvement Shows Hijacking is a NO NO! Undue Influence & the HVCC Mortgages, so easy a Caveman can do them! HERA RULES Open House Suggestions Open House Suggestions 2 Golf Outings Wall-E USDA Loans What do I need for Pre-approval? Buying a Fixer Upper What is a pre approval? What is a search & hold and why dont we use them?
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