Predatory lending is now even Bo Kociuba, Yukon Realtor,

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:

or watch a very informative video:


With smiles,

Bo in Yukon


Via Todd Clark (Broker/Sales Coach), GRI (Beaverton, Oregon Real Estate Expert) (Palazzo Realty Group):


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

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About the Author:

The above information was provided by Bo Kociuba a long time resident of Canadian County, Ok. As Broker’s Associate Bo helps people sell & buy homes in OKC Metro. She works together with her partner, Buster Elliott. They Live & Love OKC! .Bo and Buster are multi-million producers with over 50 years combined real estate experience. 

Bo loves photography and is an avid supporter of shooting sports. |405-812-1572.

We serve OKC Metro Areas: Yukon, Mustang, Bethany, Piedmont, Tuttle, Blanchard, Edmond, Oklahoma City and Moore.

We specialize in Residential & Commercial Real Estate, Ranches & Recreational Land.

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Lori Cain
eXp Realty - Tulsa, OK
Midtown Tulsa Real Estate Top Producer

Bo, I received a survey to take online regarding HVCC appraisers last week -- did you get it?

Lori, Tulsa

Jun 28, 2009 02:38 AM #1
Bo Kociuba
Berkshire Hathaway HomeServices Anderson Properties - Mustang, OK
Realtor - Mustang, Yukon & OKC Metro 405-812-1572

Lori, no, I don't think I did...what is it exactly and would you mind to forward it to me?

with smiles,

Bo in Yukon

Jun 28, 2009 10:36 AM #2
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Realtor - Mustang, Yukon & OKC Metro 405-812-1572
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