I've been a lender for 12 years. I've helped hundreds if not thousands of clients get financing on their homes. I've seen lots of odd and goofy things before. This one takes the cake.
I have a great client. A repeat client, many times in fact. They want to refi, and the numbers make sense. There is value for them, it's responsible and appropriate. All systems go...
The loan is approved, they have good stable jobs, great credit, and enough equity to make the loan possible. They have PMI now, and because the market is what the market is, they'll still have PMI moving forward. We just need the appraisal done. New HVCC rules, appraisal is a blind draw from the lenders themselves, not my "chosen" company. I suggest on the application a value for the house. When the appraisal comes back, it $25,000 higher than I expect! YAHOO! Maybe the client can get rid of PMI afterall.
The underwriter comes back and says the appraiser needs to modify and clarify the report. Ok, done. Then, the underwriter says the value is too high on the appraisal (There were 8 comps to support value). The loan is denied. WHAT??? No "counter offer" of value? No option to have another HVCC, randomized, chosen by the lender and paid by me appraisal??? Nope. The new HVCC policy doesnt allow for a second appraisal to support or contest value I am told. Just S.O.L.
I'm left to explain to a great client that her home is worth too much in the eyes of a non-biased, professionally trained, randomly chosen appraiser. And the lender won't accept the file.
WOW! Thank GOD HVCC is here to protect the consumers from unscrupulous mortgage professionals who exert undue influence on the process.
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