Predatory lending is now even easier and banks are taken full advantage!

Reblogger Bo Kociuba
Real Estate Agent with Berkshire Hathaway HomeServices Anderson Properties

Moments ago I just read my friend Todd Clark's blog post about new policy for appraisals and what a devastation it spreads in the real estate industry! Plus it costs an additional hardship and money to buyers, sellers and professionals involved in the transaction...

This policy, perhaps well intended, cripples the whole process and hurts the consumer...

If you wish you may sign a petition to repeal or reconstruct this policy - here is the link:

http://www.hvccpetition.com/

or watch a very informative video:

http://www.hvccpetition.com/Video.aspx

 

With smiles,

Bo in Yukon

 

 

Original content by Respect Realty LLC 200311024

Banks in your back pocket

On May 1, 2009, the government put in to place the HVCC appraisal law which stands for Home Valuation Code of Conduct, which was supposed to help to keep agents and mortgage brokers from being able to talk to appraisers and keep them from swaying the value they put on a home.

But, within that law, there were some things put in by (I’m guessing) some very smart bankers. Now I believe they are being very predatory, almost even more than they were two years ago.

No, I don’t own a tin foil hat, but they are starting to look comfortable. You see, one of the lines in the new HVCC law was that once the appraisal is ordered it can’t be transferred to a new lender and another appraisal would have to be ordered.

What good does this do for the consumer? It keeps their mortgage broker from shopping for a better loan with a lower rate. Because even if they found a better loan, that mortgage broker and buyer would have to start the whole process over again and pay for another appraisal and ask for an extension that the seller, more than likely, won’t accept.

So, now that the buyer is stuck with a loan that isn’t the best loan for them and there is nothing they can do. They sit and wait for their close with their interest rate lock date slowly getting closer and closer.

I’ve looked at my company’s books over the past month and a half and what I discovered was of the loans that were required to use HVCC approved appraisers only one of them closed on time. All the others closed anywhere from 22-47 days later than their scheduled closed date.

Now, here is where the fun begins…

In talking to every one of the agents in those deals, every one of those buyers lost their interest rate locks during those 22-47 days and now were stuck paying anywhere from 3/8 to a complete percentage higher than they would have if they had closed on time. That, to me, is the meaning of predatory lending. The worst part is they could have possibly saved even more if their mortgage broker could have found a better loan during the time of inspection and close. But because of the HVCC law, they were unable to do that without adding additional cost and time to the close.

So, is your bank taking advantage of your clients by using the HVCC law and other underwriting delays to make buyers lose their lock?


Todd Clark's Signature

Todd Clark - Broker / Sales Coach
Palazzo Realty Group
Phone: (503)524-9494
Fax: (503)622-8739

Contact meSubscribeSearch the MLSView my website

Most recent post Last post before this one

Daily list of short sales available in Beaverton, Oregon

Twitter Bird by Janko.

©2009 Todd Clark - Predatory lending is now even easier and banks are taken full advantage!
close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Mortgage / Finance
Location:
Oklahoma Canadian County
Groups:
Realtors®
The Lounge at Active Rain
Free Real Estate Tips and Information
Oklahoma Real Estate
Local Expert
Tags:
appraisals
home buying process
mortgagefinance
yukon realtor

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
319,542
Goodbye Active Rain
Out of Real Estate

As long as people refuse to educate themselves, they will be prey to the financial masters.

Jun 26, 2009 01:17 AM #1
Ambassador
838,906
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

We have not seen the effects of this law here. I always wonder hopw governement can take a problem and with all the collective heads and brain power make a new problem

Jun 26, 2009 01:22 AM #2
Rainmaker
418,934
Bo Kociuba
Berkshire Hathaway HomeServices Anderson Properties - Mustang, OK
Realtor - Mustang, Yukon & OKC Metro 405-812-1572

Tony - yes, the consumer has to take time to get to know the process and then make the best decision...lots of them rely on professionals to take care of the process. We are so busy making a living' that we forfit our rights and choose an easy way out, however, I always recall why there is no problem to take months to plan for a wedding, eh?

With smiles,

Bo in Yukon

Jun 26, 2009 01:34 AM #3
Rainmaker
418,934
Bo Kociuba
Berkshire Hathaway HomeServices Anderson Properties - Mustang, OK
Realtor - Mustang, Yukon & OKC Metro 405-812-1572

Charles - it is spreading like a wildfire everywhere...just a couple weeks ago I had a chance to talk to one of the local appraisers - he worked for over 10 years to build his business, guress what - for nothing! We get appraisers from out of the metro, who don't have a clue, expertise, local knowledge etc who are taking a task with not a second thought in mind ...'MONEY brother, MONEY' that's what counts...forget the integrity...

with smiles,

Bo in Yukon

Jun 26, 2009 01:40 AM #4
Ambassador
453,375
Bob Haywood
McGraw Realtors - Owasso, OK
BobHaywood.com

WOW - this is really going to muck up things that are already goofy.  Can it get any worse?

Jun 26, 2009 01:46 AM #5
Ambassador
1,229,956
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

As if things were not confusing enough, now there is just another iron thrown into the fire at the last minute.

Jun 26, 2009 02:14 AM #6
Rainmaker
418,934
Bo Kociuba
Berkshire Hathaway HomeServices Anderson Properties - Mustang, OK
Realtor - Mustang, Yukon & OKC Metro 405-812-1572

Bob - name something, anything which was touched by 'the experts' in government and actually worked?

Melissa - it is like in a kaleidoscope....every time you touch it there is a different picture....

With smiles,

Bo in Yukon

Jun 26, 2009 02:55 AM #7
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
418,934

Bo Kociuba

Realtor - Mustang, Yukon & OKC Metro 405-812-1572
Contact Us Today ...
*
*
*
*
Spam prevention

Additional Information