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HVCC, did you see it in the news?

By
Mortgage and Lending with AMCAP Premier Mortgage LTD (NMLS# 129122) NMLS# 223071

Interestingly today represents a significant change in the real estate market, and will most likely effect every homeowner, but yet I've not seen anything about it in the news outside of the industry... why?

It's hard to understand that something this big is being roll in under the cover of the night, but it is.

Home Value The HVCC requirements have established a uniform set of appraisal guidelines to govern all loans sold to Fannie Mae and Freddie Mac (i.e., all conventional loans).  The Code does not apply to FHA, VA, or USDA loans.

 All appraisals will be ordered by the Lender via their approved Appraisal Management Companies (AMC's) and will be prepared in the name of the Lender

  • Borrowers are required to provide credit card information during the application process and appraisal fee will be charged to the Borrower
  • Brokers and Loan Officers are NOT permitted to pay for the appraisal
  • Brokers and Loan Officers are NOT permitted to have any contact with the appraisers (all communications are facilitated through the Lender or AMC)

Many people are predicting that property values will continue to go down due to inexperienced appraisers. The more expereinced appraisers will do the same work but for half the price. It will be interesting how this plays out with the real estate industry.

We need to make some noise, so that the average Joe Homeowner is aware, and begins to ask questions.

Untill it's Main Street news, we can not expect to see our elected officials investigate just who benefits from the new change.

 

 

    

 

Connie Goodrich
Keller Williams Realty - McKinney, TX
CRS ABR (McKinney Realtor)Texas

Unfortunately NAR engaged way to late in the game to raise an eyebrow and bring the needed attention to this issue.  It will take a big voice to be heard.  Some lenders are not prepared with their rotational lists and how to distribute.  Most people do not understand the impact of the larger firms distributing out the business to less quality appraisers who will receive significantly less compensation for work which by the way has just increased in additional analysis and form.  It certainly is a huge question mark where things will end up and will the results sought be obtained or just another uneducated mess created. 

May 01, 2009 01:23 AM
Sarah Rummage
Benchmark Realty LLC, Nashville TN 615.516.5233 - Nashville, TN
Love Being RealtorĀ® in the Nashville TN Area!

What if the borrower does not have a credit card? 

Another issue I see is that of the appraiser doing the appraisal before the inspection is done, simply because of lack of communication. In the 'olden days' the lender would wait until the inspection was done and the buyer was sure they wanted to accept the property and THEN order the appraisal. 

May 01, 2009 01:28 AM