“For Good Reason, HVCC is BAD for Homeowners”
As many of you know, I have written many times about how bad HVCC is for homeownership. When they understand the issue, I have not spoken to any homeowner who feels HVCC was a good idea. I have never spoken to a Realtor or mortgage person that says HVCC was a good idea. Unfortunately , this misguided legislation has harmed many homeowners, whom of which was supposed to be protected.
HVCC have put many independent appraisers out of business. Many appraisers that I have spoken to about HVCC hate it. Some appraisers have told me privately, they have to keep values down, for fear that they will not get work from the appraisal management companies that employ them. How sick is that.
If you think for one moment, that HVCC hasn’t had an effect on real estate values, you should drink different Kool-Aide.
The full letter to Richard Cordray tells it like it is.
NAIHP sends outline exposing the unintentional consequences of HVCC
By: Nichereport.com
As a follow up to a meeting between Marc Savitt of NAIHP and Richard Cordray of the CFPB held January 26, 2012, The National Association of Independent Housing Professionals has formally sent a letter to Richard Cordray, Director of the Consumer Financial Protection Bureau, outlining and exposing unintentional consequences created by HVCC and the Interim Rule on Appraiser Independence.
HVCC was enacted mainly due to an “investigation of a federally chartered bank and an unregulated appraisal management company” which “revealed conflicts of interest and the influencing of appraisers to fraudulently inflate values on real estate” says Marc Savitt.
NAIHP outlines and submits proof on how HVCC is wrong for the consumer and is wrong for the industry as a whole.
Savitt also argues that The Interim Rule on Appraiser independence was created on the back of HVCC, which is also inherently flawed based on this creative process.
Read full letter and outline: NAIHP Letter to Cordray (pdf)
Read article on the origination of HVCC and Andrew Cuomo, then A.G. of New York.
image:ddpavumba/freedigitalphotos.net
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