Petition to change the Home Value Code of Conduct

By
Mortgage and Lending with National Credit Fixers - Matt Listro

Petition to change the Home Value Code of Conduct

 

 Here is a link to the petition to change the Home Value Code of Conduct:

http://www.petitiononline.com/hvcc/petition.html

It is important for everyone to go and sign the petition if this law is going to be changed.  How many appraisers do you know who have been put out of business by this new law? 

I personally know one appraiser who has no work because of this new law.  He was charging $325 for an appraisal.  Now he has no work because his mortgage brokers can not order appraisals from him.  He was just solicited by one of the big conglomerate Appraisal Management Companies to work for them.  The AMC is charging $450 for an appraisal and is only willing to pay him $200 per appraisal.  What ever happened to democracy and competition - this guy was just legislated out of his job!

Let me ask you another question: how long will it be until you have a real estate deal go south because of this new law.  Because of this new law, appraisals are expected to cost more and take longer.  What happens when your deal falls apart because the value doesn't come in because an appraiser was assigned from 50 miles away and doesn't know the local market.

Currently their are 8,900 signatures but they need lots more - please take a moment and sign it. 

PLEASE PLEASE FLAG this post for feature status - it is imperative that the real estate community gets behind this move to change this legislation.

:)

Matt

NCF

Credit Repair Company

Posted by

Matt

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Comments (44)

Anthony Vosilla
Tony's Appraisal Services - Centereach, NY

Of course we realize that if the appraisers would tell the AMC's where to go this situation would straighten itself out in a month...Considering the overhead that these companies have it wouldn't take long...

But then herding stray cats has always been a dream...

May 12, 2009 06:56 AM
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

I agree with you about the out of area guys they send in.  I guess there's too much pride involved with saying 'that's out of my area'.  I was 9184.

May 12, 2009 07:10 AM
Charles E. Jack, IV
Charles E. Jack Appraisal & Consulting - Las Vegas, NV
MAI

Anthony Vosilla:

I agree that appraisers can be a fairly spineless bunch. 

And we don't have very good organization either compared to brokers with NAR. 

State Licensing kind of killed the ability for us to unite under one organization.  And we don't have an MLS - we use the Realtor's association MLS. 

Also, we just don't have the numbers in our profession that the real estate brokers and agents have and our lobbying stinks.  So there you have it...  Not a real powerful or well-represented profession in Congress or in any State Legislature...

May 12, 2009 07:14 AM
Monica Neubauer
Benchmark Realty - Franklin, TN
Franklin, TN - Realtor, Trainer

Signed the petition and am going to reblog it.  RESPA continues to be refined to "protect" the consumer and this new regulation only charges the consumers more.  Government contradicting itself.

May 12, 2009 07:31 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Done!

May 12, 2009 07:39 AM
Matt Listro
National Credit Fixers - Matt Listro - Vernon, CT
Your Credit Repair Expert

Thank you again everyone!

I have another one for you.  A mortgage broker referral partner of mine (who shall remain nameless because of what I am about to write) originated a refinance transaction today.  Instead of writing the mortgage as a convention refinance which would have given the borrower the best deal; the loan was written as an FHA loan in order that the broker could order their own appraisal.  This was not the best loan for the borrower but it was the best loan for the mortgage broker.

:)

May 12, 2009 07:59 AM
Anthony Vosilla
Tony's Appraisal Services - Centereach, NY

Lyn,

 

For some reason I don't think its a pride thing.  Knowing what goes on you may be getting a TRAINEE who is chasing his/her hours for licencing.....of course the appraisal gets written as did inspect on the right side of the signature page, but there was only one person at the property observation time.  ???

 

May 12, 2009 08:33 AM
Catherine Coy
Equistar Funding Corp. - Huntington Beach, CA

You've all made excellent points but the practical reality is that coercion MUST BE ELIMINATED from appraisals.  If you ever coerced an appraiser--(even providing him/her with a copy of the sales contract is subtle coercion)--consider yourself repudiated. AMC may not be the cure, but the cancer has spread so far--(90% of appraisers report being pressured to hit the number)--that only radical surgery will begin to put the patient (accurate appraisals) on the right path.

Appraisers Under Pressure to Inflate Values

http://www.washingtonpost.com/wp-dyn/content/article/2007/02/02/AR2007020200712.html

 

 

May 12, 2009 10:14 AM
Catherine Coy
Equistar Funding Corp. - Huntington Beach, CA

Michael Mackey wrote:  Appraisals that used to average $350- 400 now are costing $650-700.

Well, that's the price a consumer pays for an appraisal free of coercion.  In many cases, the extra few hundred dollars will keep the consumer from overpaying for a property deemed extraordinary by two overzealous real estate agents who need the commission to pay their phone bills.

 

May 12, 2009 10:18 AM
Matt Listro
National Credit Fixers - Matt Listro - Vernon, CT
Your Credit Repair Expert

Update - Over 9,500 signatures now

:)

May 13, 2009 02:03 AM
Mike Saunders
Lanier Partners - Athens, GA

Matt - thanks for posting this, I will be checking this petition out.

May 13, 2009 02:35 AM
Anonymous
William Moores

Catherine,

New Fannie/Freddie guidelines requires that the appraiser to be supplied with a sales contract.  I,ve always requested one as the forms Fannie/Freddie require ask for an analysis of the sales contract.  With out the contract how would we know about seller concessions, if any?  An ethical appraiser does not try to "hit" the sale price.  If the value is above the sales price everyone is happy.  If it is below it allows the borrower know that he is paying to much for the property and should renegotiate the purchase price.  Please no laughing, there are some ethical appraisers out there.

 

William Moores-Bay Area Appraisals, Inc.-Tampa

May 13, 2009 12:04 PM
#36
Anthony Vosilla
Tony's Appraisal Services - Centereach, NY

It is not only Fannie and Freddie....It is also USPAP

USPAP says:

Standards Rule 1-5


When the value opinion to be developed is market value, an appraiser must, if such information is available to the appraiser in the normal course of business: 14

(a)
analyze all agreements of sale, options, and listings of the subject property current as of the effective date of the appraisal; and
(b)
analyze all sales of the subject property that occurred within the three (3) years prior to the effective date of the appraisal.15

Comment: See the Comments to Standards Rules 2-2(a)(viii), 2-2(b)(viii), and 2-2(c)(viii) for corresponding reporting requirements relating to the availability and relevance of information.

Also

http://www.appraisalfoundation.org/s_appraisal/bin.asp?CID=12&DID=1282&DOC=FILE.PDF

 

May 13, 2009 02:26 PM
Matt Listro
National Credit Fixers - Matt Listro - Vernon, CT
Your Credit Repair Expert

I am not an appraisal expert - but I do know that there is a box on the appraisal for the sales price and one for the seller concessions (the 1004 form) so how can you (Catherine) possible say the appraiser shouldn't be provided a copy of the sales contract - then the appraiser would not be able to complete the form!

:)

May 14, 2009 01:50 AM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

I've gone and added my signature to the list.  Thank you for bringing this to my attention.  While, I agree there's room for reform, I don't believe this does what it's intended to do.

May 14, 2009 05:28 PM
Matt Listro
National Credit Fixers - Matt Listro - Vernon, CT
Your Credit Repair Expert

Hi Christine: Thanks for voting.

UPDATE 11,416 signatures !!!

May 15, 2009 11:18 AM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

It's ridiculous that they are requesting this.  So many small appraisal firms will be completely out of business.  What are they thinking?

May 16, 2009 12:40 AM
Anthony Vosilla
Tony's Appraisal Services - Centereach, NY
Matt Listro
National Credit Fixers - Matt Listro - Vernon, CT
Your Credit Repair Expert

Hi Rob: I don't think they understood the ramifications of this code!

Hi Tony: Thanks for the info.

:)

May 17, 2009 05:20 PM
Matt Listro
National Credit Fixers - Matt Listro - Vernon, CT
Your Credit Repair Expert

They just crossed the 12,000 signarure mark

5/18/09

May 18, 2009 01:35 PM